Euphoria and The Pitt support streamer growth but revenues dip at production and linear network divisions
HBO Max revenues and profits have soared over the past three months but parent company Warner Bros Discovery’s studio and linear divisions suffered, leading to Q2 results that disappointed Wall Street.
The streamer’s Q2 revenues rose 10% on this time last year to hit $3.1bn, with EBITDA soaring 75% to $512m. Ad revenue on the streamer was up 8% and distirbution fees rose 11%.
The results were buoyed by roll-outs across countries including the UK, with shows such as Euphoria S3, The Pitt S2 and House of the Dragons propelling subscriber interest.
However, WBD’s total revenue was down 11% to $8.7bn against expectations of $9.2bn, with net income down from $1.58bn a year ago to $149m in 2026.
The slump was partly put down to amortisation and restructuring costs totalling $1.1bn.
Revenue at WBD’s production arm was down 39% to hit $2.3bn while EBITDA sunk almost 90% to $96m, with movie release Supergirl failing to engage viewers, unlike films such as A Minecraft Movie and Sinners at the same time last year.
Elsewhere, results at WBD’s Global Linear Networks division continued to decline, with the company’s decision to ditch broadcasting NBA basketball, which was picked up by NBC, impacting advertising interest.
That led to advertising revenue dipping 22% to $1.7bn, with the overall linear unit reporting revenues of $3.99bn, down 17%. EBITDA was $1.4bn, down 4%.
The results came a day after Disney revealed its streaming operations had also seen a jump in profits, which more than doubled in its most recent quarter. The Mouse House said it triple the amount it is spending on international originals to drive uptake of its services outside of the US.
WBD is in something of a stasis at present after its planned $111bn takeover by Paramount was delayed by an antitrust trial that has been set for March next year. Paramount chief exec David Ellison on Wednesday reiterated his belief that the deal would go through, while the UK’s Competition and Markets Authority waved through the deal earlier today.
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