Warner Bros. Discovery Earnings Call Transcripts
Fiscal Year 2026
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Streaming revenue and EBITDA hit record highs, driven by global subscriber growth and strong content. Studios are ramping up film output, with a robust pipeline for 2027, while networks saw significant sports and news viewership gains. Bundling and content strength are expected to drive best-ever retention in 2026.
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Q1 2026 saw strong streaming growth, with HBO Max surpassing 140 million subscribers and robust content engagement. Paramount Skydance's $31/share acquisition was approved, while all segments showed operational momentum and improved profitability.
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Stockholders approved the merger with Paramount Skydance, while the executive compensation proposal failed. The meeting was held virtually, with all board members and key executives present, and voting results will be finalized and reported to the SEC.
Fiscal Year 2025
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Historic box office and streaming growth drove record results, with strong international expansion and a planned separation of Warner Bros. and Discovery Global boosting shareholder value. Streaming profits are forecasted to triple by 2030, supported by content, subscriber growth, and operational efficiencies.
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Industry leadership achieved in motion pictures and streaming, with over $4B in box office revenue and 30M new streaming subscribers. Studios expect to exceed $2.4B in EBITDA, and debt reduction continues, while a robust content slate and international expansion drive future growth.
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Significant operational transformation and creative investment have driven a turnaround to profitability, with a planned Q2 split into Streaming & Studios and Global Networks. Studio and streaming synergies, global expansion, and a focus on quality content underpin growth, while resilient advertising and new product launches support future value creation.
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The company is on track to split into Warner Brothers and Discovery Global by Q2 2026, with strong financial momentum and strategic plans for monetizing assets and expanding internationally. Both entities will focus on content quality, digital growth, and operational efficiency.
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Strong Q2 momentum with record box office, Emmy-leading TV, and 3.4M HBO Max subscriber adds. Studio and streaming EBITDA targets raised for 2025, net leverage reduced to 3.3x, and major franchise and international expansion underway.
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A major separation will create two focused, independent companies: Global Networks and Streaming and Studios. Each will pursue tailored growth strategies, with strong financial targets, operational efficiencies, and capital structures designed for future success. The split is expected by mid-2026.
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Significant progress was highlighted in streaming profitability, content quality, and international expansion, with a disciplined approach to sports rights and advertising. Strategic restructuring and investment in both studio and local content position the business for dynamic growth.
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Strong Q1 streaming growth with 5M new subscribers and $339M EBITDA, on track for $1.3B in 2025. Studio and global expansion, premium IP, and bundling drive future growth, while cost discipline and strategic content focus support profitability.
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A strategic realignment has separated global linear networks from streaming and studios, enabling greater transparency and flexibility. Streaming growth is accelerating with Max's global rollout and strong content brands, while the studio and gaming divisions are revitalizing core IPs. Distribution deals and digital news expansion further support a positive outlook.
Fiscal Year 2024
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Direct-to-consumer subscribers reached 117 million in 2024, with strong EBITDA growth and a target of 150 million subs by 2026. Corporate restructuring, affiliate renewals, and international expansion are driving stability and future growth, despite ongoing linear and ARPU pressures.
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International revenues are rising, driven by strategic partnerships, the global rollout of Max, and a dual approach to market entry. Free-to-air TV remains strong in many regions, but streaming is expanding rapidly, with local content and advertising seen as key growth drivers.
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A strategic shift to profitable growth has driven platform, content, and international expansion, with Max now in 74 markets and a robust pipeline of major IP-driven series. Ad-supported tiers, pricing resets, and password sharing controls are set to further boost revenue and margins. Games and content divisions are being refocused for long-term growth.
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DTC segment delivered strong subscriber, revenue, and EBITDA growth, with Max expanding globally and new partnerships driving momentum. Studios faced headwinds from games impairments but expect a rebound, while networks offset linear declines with innovative deals.
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Over the past two years, the company restructured financially, expanded Max globally, and rebuilt its creative teams to drive growth. Strategic partnerships, disciplined sports investments, and a focus on storytelling and global scale underpin its vision for sustained profitability and industry leadership.
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Key priorities include disciplined capital allocation, operational execution, and integrated management. Studio and DTC segments are positioned for growth, with investments in technology, content, and global expansion. Free cash flow remains strong, and strategic options are under review.
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Strong D2C growth and global expansion drove record streaming ad revenues and subscriber gains, offsetting linear TV declines. A $9B impairment reflects industry disruption, but management remains confident in achieving positive EBITDA in H2 2024 and $1B+ in 2025.