Warner Bros. Discovery Reports Strong Q4 Earnings, Forecasts Double-Digit Growth in Streaming Segment

Warner Bros. Discovery, the media and entertainment company, reported a strong fourth quarter, with a significant increase in global streaming subscribers and a forecast of double-digit growth in the streaming segment.

The company added 6.4 million global streaming subscribers in the fourth quarter, bringing the total number of subscribers to 116.9 million. The streaming segment, anchored by flagship service Max, reported revenue of $2.65 billion, a 5% increase from $2.53 billion in the same quarter last year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the unit came in at $409 million, compared with an adjusted EBITDA loss of $55 million in the fourth quarter of 2023.

Guidance and Forecasts

The company forecast adjusted EBITDA of $1.3 billion for its streaming business for the year, roughly double the $677 million adjusted EBITDA it reported for 2024. Warner Bros. Discovery also expects to reach 150 million global subscribers by the end of 2026, with a "clear path" to achieve this goal.

Sports and News

The company announced that it will keep its B/R Sports and CNN content available at no additional cost to subscribers in its standard and premium tiers. Initially, Warner Bros. Discovery planned to charge an additional cost for sports content, but it will now pull both verticals from its basic, ad-supported tier beginning March 30.

The company will continue to experiment with its news and sports business models, according to JB Perrette, CEO and president of global streaming and games. While sports have increased their presence on streaming services recently, with platforms like Netflix adding to their live sports portfolios, Warner Bros. Discovery is more focused on maximizing its returns than acquiring more sports content.

Financial Performance

Warner Bros. Discovery reported a net loss of $494 million for the fourth quarter of 2024, or a loss of 20 cents per share, compared with a net loss of $400 million, or a loss of 16 cents per share, during the fourth quarter of 2023. The company’s overall fourth-quarter revenue fell 2% to $10.03 billion from $10.28 billion during the same quarter in 2023.

Conclusion

Warner Bros. Discovery’s strong fourth-quarter earnings and forecast of double-digit growth in the streaming segment demonstrate the company’s commitment to its streaming strategy. The company’s focus on maximizing returns and experimenting with its news and sports business models may lead to future success in the competitive streaming landscape.

Frequently Asked Questions

Q: What was Warner Bros. Discovery’s fourth-quarter revenue?
A: Warner Bros. Discovery reported fourth-quarter revenue of $10.03 billion, a 2% decrease from $10.28 billion in the same quarter last year.

Q: What was Warner Bros. Discovery’s net loss in the fourth quarter of 2024?
A: The company reported a net loss of $494 million, or a loss of 20 cents per share, in the fourth quarter of 2024.

President Trump’s Pick for Consumer Financial Protection Bureau Director Faces Grilling from Senate Democrats

President Donald Trump’s nominee to lead the Consumer Financial Protection Bureau, Jonathan McKernan, faced intense questioning from Democratic senators on Thursday, who pressed him to confirm that he would uphold his legal obligations to run the agency.

McKernan, a former Federal Deposit Insurance Corporation board member, testified before the Senate Banking, Housing and Urban Affairs Committee, where he emphasized his commitment to "fully and faithfully" enforcing laws related to the CFPB’s mission.

McKernan’s Stance on CFPB’s Mission and Leadership

In his opening remarks, McKernan criticized the agency’s previous leadership, led by Rohit Chopra, stating that they had acted in a "politicized manner," exceeded their legal authority, and inadvertently raised prices for consumers. He also expressed concerns about the agency’s "crisis of legitimacy."

However, McKernan’s comments were met with skepticism by Democratic senators, who accused him of being part of a broader effort to dismantle the CFPB. Sen. Elizabeth Warren (D-MA) questioned McKernan on whether he would uphold the agency’s statutory requirements, including maintaining a website and toll-free line for consumer complaints, as well as advocacy offices for military veterans and senior citizens.

CFPB’s Current State and Controversies

The CFPB has recently faced significant changes, including the departure of its acting director, Russell Vought, and the shuttering of its Washington headquarters. The agency has also fired about 200 employees and told remaining staff to stop nearly all work, sparking fears that the agency may be on the brink of extinction.

These developments have led to concerns about the agency’s ability to effectively regulate the financial industry and protect consumers. The CFPB has also dismissed several enforcement lawsuits, including actions against Capital One and a Berkshire Hathaway unit.

Conclusion and Next Steps

McKernan’s confirmation hearing has highlighted the intense scrutiny the CFPB faces under the Trump administration. While he has expressed his commitment to upholding the agency’s mission, his critics remain skeptical about his ability to lead the agency in the face of significant opposition from the White House and the Office of Management and Budget.

Only time will tell whether McKernan will be able to "right-size" and "refocus" the CFPB, as he has promised, or whether the agency will continue to face challenges in its mission to protect American consumers.

Frequently Asked Questions

Q: What is the purpose of the Consumer Financial Protection Bureau?
A: The CFPB is an independent agency responsible for regulating and supervising consumer financial products and services, including banks, credit unions, and other financial institutions.

Q: What is the controversy surrounding the CFPB?
A: The CFPB has faced controversy under the Trump administration, with allegations of politicization, excessive authority, and potential elimination of the agency.

Q: What is the current state of the CFPB?
A: The CFPB is currently facing significant changes, including the departure of its acting director, Russell Vought, the shuttering of its Washington headquarters, and the firing of about 200 employees.

Eli Lilly to Invest $27 Billion in US Manufacturing Sites, Ties Move to Trump’s Policies

Eli Lilly said it will invest at least $27 billion to build four new manufacturing sites in the U.S., as demand for its blockbuster weight loss and diabetes injections soars and the company develops new drugs for other conditions.

The announcement comes as drugmakers and companies across different industries work to build goodwill with President Donald Trump, who has emphasized reshoring manufacturing to the U.S. and reducing reliance on foreign supply chains. He has threatened companies — and pharmaceutical businesses in particular — with tariffs if they do not manufacture products in the U.S.

The company made the announcement at an event in Washington, D.C., emphasizing the political undertones of the strategy. The event featured several speakers from the Trump administration, including Kevin Hassett, director of the White House National Economic Council, and Commerce Secretary Howard Lutnick, who explicitly tied the announcement to Trump’s policies.

The Largest Pharmaceutical Expansion Investment in U.S. History

The move brings Eli Lilly’s total U.S. manufacturing investments to more than $50 billion in recent years. The company’s CEO, David Ricks, called the investment "the largest pharmaceutical expansion investment in U.S. history." The new sites will create more than 3,000 jobs for workers such as engineers and scientists, along with 10,000 construction jobs as the plants are built.

Future Sites and Pipeline

Eli Lilly has not decided on the location of the four new U.S. sites, but will be accepting location submissions through March 13 and will announce decisions on new sites in the coming months. The company is optimistic about its pipeline across therapeutic areas, including cardiometabolic health, oncology, immunology, and neuroscience.

The new investments build on the success of Zepbound and Mounjaro, which share dominance of the booming market for so-called GLP-1 drugs with Novo Nordisk’s weight loss drug Wegovy and diabetes treatment Ozempic.

Counterfeit and Compounded Medications

Ricks took a shot at cheaper compounded versions of its injectable drugs, saying "America faces a growing threat from an influx of counterfeit and compounded medications." The company’s efforts to boost the supply of Zepbound and Mounjaro aim to ensure that eligible patients are safely accessing those branded treatments instead of cheaper compounded versions.

Conclusion

Eli Lilly’s $27 billion investment in the U.S. aims to address the growing demand for its blockbuster weight loss and diabetes injections, while also aligning with President Trump’s policies on reshoring manufacturing and reducing reliance on foreign supply chains. The company’s efforts to boost the supply of Zepbound and Mounjaro will ensure that eligible patients are safely accessing those branded treatments instead of cheaper compounded versions.

Frequently Asked Questions

Q: What is the total investment by Eli Lilly in the U.S. manufacturing sites?
A: The company’s total U.S. manufacturing investments are more than $50 billion in recent years.

Q: How many jobs will be created by the new manufacturing sites?
A: The new sites will create more than 3,000 jobs for workers such as engineers and scientists, along with 10,000 construction jobs as the plants are built.

Q: What are the locations of the new U.S. manufacturing sites?
A: Eli Lilly has not yet decided on the locations of the four new U.S. sites, but will be accepting location submissions through March 13 and will announce decisions on new sites in the coming months.