WBD Delivers $9 Billion in Q3 Revenues

In the third quarter, total revenues at Warner Bros. Discovery were $9 billion, a 6 percent decrease from the prior-year quarter, though streaming and studios revenues increased by 7 percent ex-FX.

Though total revenues were down 6 percent, if the impact of the 2024 Olympics in Europe is excluded, total revenues in Q3 were flat.

While streaming and studios revenues increased, global linear networks saw a 23 percent ex-FX decline to $3.9 billion.

Distribution revenues were $4.7 billion, a 4 percent decrease from the year-ago period. Advertising revenues decreased 17 percent ex-FX as ad-lite streaming subscriber growth was more than offset by domestic linear audience declines.

Content revenues, meanwhile, decreased 3 percent, primarily driven by the sublicensing of Olympic sports rights to broadcast networks throughout Europe I the prior year, partially offset by the stronger performance of the theatrical releases in the current-year quarter. Content revenues excluding the impact of the 2024 Olympics in Europe increased 23 percent ex-FX.

Net loss available to WBD was $148 million, which includes $1.3 billion of pre-tax acquisition-related amortization of intangibles, content fair value step-up and restructuring expenses.

Warner Bros. Discovery ended the quarter with 128 million streaming subscribers, an increase of 2.3 million versus Q2.

In a letter to shareholders, the company said, “We continue to focus on executing against our key strategic pillars and moving with momentum toward our planned separation alongside the board’s process to review and evaluate strategic alternatives. The investments we have made in strengthening our operating capabilities throughout the organization over several years are delivering significant returns, and we intend to continue to capitalize on that hard work.”