Warner Bros. Discovery Q4 2024 Earnings

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.