Warner Bros. Discovery Posts Streaming Profit of $289 Million in Q3 as Subs Grow to 110.5 Million
November 7, 2024 @ 4:21 AM
Warner Bros. Discovery posted a streaming profit of $289 million during its third quarter of 2024 after posting its largest ever quarterly growth in subscribers since the launch of Max, topping 110 million globally.
But the companyâs overall results were dragged down by the studios division, which posted a 17% decrease in revenue and 58% decrease in profit during the quarter, which was due in large part to last yearâs comparison to âBarbie.â
Here are the top-line results:
Net income:Â $135 million, compared to a loss of $417 million a year ago.
Earnings Per Share:Â A profit of $5 cents per diluted share, compared to an estimated loss of $7 cents per share expected by analysts surveyed by Zacks Investment Research
Revenues: $9.6 billion, compared to $9.94 billion expected by analysts surveyed by Zacks Investment Research
Adjusted EBITDA:Â $$2.4 billion, an 19% decrease from $2.97 billion a year ago.
Subscribers:Â Added 7.2 million subscribers for a total of 110.5 million globally
Direct-to-consumer division posts strong growth, driven by Maxâs international expansion
The direct-to-consumer division reported a total of 52.6 million domestic subscribers and 57.9 million international subscribers. The streaming divisionâs $289 million profit, which included a $41 million loss from the broadcast of the Olympics in Europe, was up $178 million from a profit of $111 million a year ago.
The DTC division saw total revenue grow 8% to 2.6 billion, compared to $2.44 billion in the year ago period. Average revenue per user came in at $11.99 domestically, $4.05 internationally and $7.84 globally.
Distribution revenue climbed 6% year over year to $2.32 billon, primarily driven by a 15% increase in subscribers, as well as higher pricing, following the launch of Max in Latin America and Europe during the first half of 2024, partially offset by continued domestic linear wholesale subscriber declines.
Advertising revenue rose 49% to $205 million, primarily driven by an increase in domestic ad-lite subscribers, and content revenue slip 11% to $107 million, primarily driven by fewer third-party licensing deals.
The segmentâs results includes Max, Discovery+ and traditional HBO cable subscriptions.
More to comeâŠ
