Warner Bros. Discovery Beats Profit Estimates as Max Subscribers Jump 7.2 Million, Shares Rise 5%

Nov 7, 2024, 01:10 PM

Warner Bros. Discovery reported third-quarter earnings that exceeded profit expectations but fell short on revenue. The company posted an earnings per share of $0.05, surpassing analysts' estimates of a loss of $0.09 to $0.11. Revenue declined 3% year-over-year to $9.62 billion, missing the projected $9.8 billion. Adjusted EBITDA was $2.41 billion, down 18% year-over-year excluding foreign exchange impacts. Advertising revenue came in at $1.68 billion, below expectations of $1.73 billion. Net income was $135 million, including $1.6 billion of pre-tax acquisition-related amortization of intangibles and content. The company's streaming platform, Max, added 7.2 million subscribers—the largest single-quarter increase—to reach a total of 110.5 million subscribers, surpassing the expected 109 million. The direct-to-consumer division reported a profit of $289 million, up from $111 million in the prior year. However, the studios segment saw a 17% drop in revenue to $2.68 billion, attributed to a 40% decline in box office performance during a 'Barbie'-less summer.