Warner Bros Discovery Sees Max Hit 116.9 Million Subscribers As Streaming Posts Profit, Cable Network Ad Revenue Falls 17%

Warner Bros. Discovery‘s linear networks continued to lose ground amid ongoing challenges, weighing on the fourth quarter.

Revenue eased 1% to $10 billion, shy of Wall Street forecasts. Net $1.9 billion in charges including restructuring expenses hit the bottom line as the company saw a $640 million loss for the last three months of 2024, it reported Thursday. But the company beat on other metrics and streaming added 6.4 million subscribers, pushing Max total subs to 116.9 million, and the division saw a profit. The TV studio and library continued to shine.

Shares bounced 6% higher in early trading today on the numbers. Max is in the midst of a worldwide expansion, and an upbeat shareholder letter released in tandem with the financials anticipated $1.3 billion in streaming profits for full-year 2025 along with a “clear path” to reach at least 150 million global subscribers by the end of 2026.

Networks, WBD’s biggest segment, saw revenue dip 5% to $4.8 billion and profits down 13% to $1.9 billion. Ad revenue dropped 17%, driven by domestic networks audience declines of 28% and the continuing softness in the domestic linear advertising market. Distribution revenue eased 5%. Revenue from content jumped. In recent months, WBD has secured renewals with rate increases with five of its biggest six distribution partners.

Media companies are transitioning to linear and WBD may be speeding up the process in a corporate restructuring to take effect later this year that many believe will ultimately lead to splitting off its cable networks, much like Comcast is planning to do.

Revenue at Studios rose 16% to $3.7 billion driven by TV, which jumped 64% on internal licensing agreements and higher initial telecast deliveries, which were impacted by the WGA and SAG-AFTRA strikes in the prior year. And the segment’s adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) surged 78% to $950 million, beating forecasts.

Theatrical revenue decreased 9% on fewer releases.

The bugaboo of Games saw revenue plunge 29%. That business is currently being restructured.

DTC revenue rose 5% to $2.7 billion and the segment swung to a $409 million profit from a $55 million loss. Ad revenue rose 27%. Content revenue decreased 40% due to fewer third-party licensing deals.