Warner Bros Discovery Q2 Results. Discovery reported second-quarter results. Wall Street was disappointed in numerous ways, including subscriber numbers. 95.8 million direct-to-consumer streaming subscribers worldwide ended the quarter. Industry experts projected 96.7 million, 2 million less than in the first quarter.
In the second quarter, the company debuted its Max streaming service, combining HBO and Discovery network unscripted blockbusters. However, people switched from Discovery+ to Max. This reduced subscriptions. According to Antenna, Discovery+ cancellations rose 68% from June 2022 due to the adjustment.
Despite struggling to attract new subscribers, Warner Bros. Discovery repaid $1.6 billion in debt during the quarter. The corporation also tender-offered up to $2.7 billion in debt. The company’s major goal is to pay down Warner Bros. and Discovery’s massive 2022 debt while it moves toward investment-grade status by year’s end.
It lost $1.24 billion, or 51 cents per share. Last year, the corporation lost $3.42 billion, or $1.50 per share. Even though overall income rose 5%, foreign currency and the merger reduced it by 4% to $10.36 billion.
Warner Bros. Discovery prioritizes video revenue. The first quarter was the first time direct-to-consumer streaming produced money, and the second quarter lost $3 million due to Max-related charges.
Warner Bros. Discovery plans to consolidate its streaming services to maximize its merger. Even though studio issues caused an 8% revenue loss from the year prior, this is accurate. The networks section was constant, but advertising income dropped due to traditional cable TV consumers leaving and a weak advertising market. Networks performance was flat due to this reduction.
Warner Bros. Discovery expects “Barbie” will impact the corporation in the third quarter. Streaming commercials, particularly HBO ads, have helped the company succeed. Quarterly adjusted EBITDA rose 30% to $2.15 billion. Cost-cutting and content licensing increased revenue. Again, the corporation wants its debt-to-earnings ratio (before interest, taxes, and depreciation) to be less than four.