Warner Bros. Discovery stunned analysts by reporting a net profit of $1.58 billion in Q2, a dramatic reversal from last year’s multibillion-dollar loss. Earnings per share reached $0.63, far exceeding the projected $0.21 loss, while revenue climbed to $9.81 billion, slightly above expectations. The turnaround was driven by blockbuster theatrical performances—notably A Minecraft Movie, which grossed nearly $1 billion globally—and a streaming surge, with HBO Max adding 3.4 million subscribers, outperforming forecasts. International expansion, particularly in Australia, bolstered the streaming division, which posted a $293 million profit versus prior losses.
Traditional TV Drags on Momentum
Despite the strong quarter, investors remained wary as shares dipped 7%. The cable TV segment, home to networks like CNN, continued to struggle, with ad revenue dropping 12% and domestic viewership declining. Traditional TV sales fell 9%, a trend expected to worsen due to weaker sports programming and the absence of election-year coverage. While studio successes and streaming growth offered bright spots, structural challenges in linear TV and high debt kept market sentiment subdued.
