Warner Bros. Discovery Sees Streaming Subs Rocket To 110 Million As International Rollout Gathers Pace, But Q3 Revenues Dip With Box Office Down

Warner Bros Discovery added more than seven million net subscribers in the third quarter of 2024 as its international Max rollout gathered pace, but total revenues and earning both dipped versus 2023 as box office takings tumbled.

Growth in the DTC segment was attributed to international expansion, as Max rolls out globally. Later this month on November 19, the service will launch in several Asia-Pacific markets. European launches began in May. Global DTC subscribers were 110.5 million at the end of the quarter, with the 7.2 million added representing the biggest quarterly increase since the launch of Max.

Total revenues were $9.62 billion, a 3% fall year-on-year, while total adjusted EBITDA was $2.4 billion, down 18%. Net income was just $135M, thanks in large part to a $1.6 billion pre-tax cost relating to “acquisition-related amortisation of intangibles, content fair value step-up and restructuring expenses.”

Wall Street analysts had expected total revenue of $9.81 billion, down from $9.98 billion in the same quarter a year ago when the impacts of the labor strikes were being keenly felt, as well as a loss per share of 8 cents, compared with a year-ago loss of 17 cents.

The July-to-September quarter did not reflect two recent setbacks for WBD: the October release of Joker: Folie à Deux, the biggest movie flop of 2024; and the loss of NBA rights, which will take effect in 2025, after the current season. While the NBA remains in place for now, its disappearance next year after nearly four decades in the Turner fold has prompted worries about the potential impact on carriage fees for TNT and other networks. WBD did manage to secure an early distribution renewal with Charter Communications, the No. 1 U.S. pay-TV operator, in September despite the basketball news.

WBD is also a partner in joint venture Venu Sports alongside Disney and Fox. The streaming service’s planned August launch was scrubbed after a federal judge granted a request for a preliminary injunction by Fubo, a pay-TV provider suing Venu’s backers for antitrust violations.

Shares in WBD have traded in the $7 to $8 range since the springtime as investors fret about its reliance on linear TV, which has been ravaged by cord-cutting. Last August, the company took a $9.1 billion write down on the value of its cable networks, citing the loss of the NBA.

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