Warner Bros. Discovery had a mixed first quarter with beats on streaming subs and profit, a drop in revenue from the film studio, which turned around in Q2. Domestic linear advertising dipped.
The company ended March with 122.3 million streaming subscribers,, an increase of 5.3 million subscribers vs Q4. Streaming saw a rofit of $339 million.
Total revenues of about $9 billion dipped 10%
Distribution revenues dipped as growth in global streaming subscribers was more than offset by continued domestic linear pay TV subscriber declines.
Advertising revenues decreased 8% ex-FX, as ad-lite subscriber growth was more than offset by domestic linear audience declines.
Content revenues decreased 25% on theatrical with lower box office and home entertainment revenues due to the stronger performance of the 1Q24 theatrical releases and carryover from the 4Q23 releases, as well as no games releases in the current year quarter.
A net loss of about $500 million includes $1.6 billion of pre-tax acquisition-related amortization of intangibles, content fair value step-up, and restructuring expenses.
Theatrical revenue decreased 27% ex-FX, as a result of lower box office and home entertainment revenues, partially offset by higher intercompany content sales.T
he decrease in box office revenue was primarily due to the strong performance of Dune: Part Two and Godzilla x Kong: The New Empire as well as higher carryover from the fourth quarter 2023 theatrical releases in the prior year. The decrease in home entertainment revenue was primarily due to the robust performance of Wonka and Aquaman and the Lost Kingdom in the prior year.
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