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.
Ad
Warner Bros. Discovery (A) Stock: Buy or Sell?! New Warner Bros. Discovery (A) Analysis from February 7 delivers the answer:
The latest Warner Bros. Discovery (A) figures speak for themselves: Urgent action needed for Warner Bros. Discovery (A) investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 7.
Warner Bros. Discovery (A): Buy or sell? Read more here...
