Warner Bros Discovery (WBD) revenues for the second quarter increased marginally on the year-ago period to reach $9.8bn as the Streaming and Stud
Warner Bros Discovery (WBD) revenues for the second quarter increased marginally on the year-ago period to reach $9.8bn as the Streaming and Studios segment saw a 9% rise to $2.8bn buoyed by forceful theatrical performances.
For the three months ended June 30 studios revenue increased 55% to $3.8bn and content revenues increased 16% ex-FX, primarily driven by excellent box office that generated more than $2bn worldwide.
A Minecraft Movie opened on April 2 and has grossed more than $955m to date, complemented by Sinners ($365m), F1 on behalf of Apple ($552m), and New Line’s Final Destination: Bloodlines ($285m). The last five theatrical releases have each opened on more than $45m in North America – a first for any studio.
Underscoring the strength of the theatrical business led by Michael De Luca and Pam Abdy – who looked on shaky ground in the first quarter after a string of underperformers – WBD CEO David Zaslav now plans 12-14 theatrical releases a year.
This will comprise one to two Warner Bros tentpoles, primarily using well-known IP; one to two DC Studios films; three to four New Line releases; one to two Warner Bros Animation titles; and a “select number of moderately budgeted original films”.
DC Studios’ Superman opened in the third quarter and currently stands at $559m, while New Line’s highly regarded horror Weapons arrives this weekend. Coming up from DC Studios are Supergirl: Woman Of Tomorrow and Clayface in 2026, and the next Wonder Woman. The Batman II is gearing up for a production start next spring and is scheduled for 2027.
Referring to the studio pecking order, Zaslav told analysts on a call: “We were in last place and went from last to first […] Disney’s a little bit ahead right now […] We’re really making the turn.”
The CEO added that Peter Jackson has turned in “a great script” for The Lord Of The Rings: The Hunt For Gollum.
The studios segment is projected to reach at least $2.4bn of adjusted EBITDA for the full year as it aims for more than $3bn annually.
Zaslav and WBD CFO Gunnar Wiedenfels are in the process of splitting the company into two in a move that essentially undoes the 2022 merger between WarnerMedia and Discovery at a time of linear TV decline that has seen the company’s stock plummet by 60%.
The split is expected to close in mid-2026 and will see Zaslav run Streaming & Studios as president and CEO, and Wiedenfels assume the same titles in charge of Global Networks.
Returning to Thursday’s Q2 report, global streaming subscribers increased by 3.4m over Q1 to reach 125.7m. Streaming advertising revenues fell 10% ex-FX and executives said ad-lite streaming subscriber growth was “more than offset by domestic linear audience declines”.
Net income available to WBD was $1.6bn; total adjusted EBITDA was $2bn and up 9% on the year-ago quarter mostly due to growth in the Streaming and Studios segments, partially offset by a decline in Global Linear Networks.
WBD reported free cash flow of $700,000, impacted by approximately $250m of separation-related items. The company ended the quarter with $4.9bn of cash on hand and $35.6bn in gross debt, and 3.3x net leverage.
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