HBO Max’s international growth fuels WBD results

A spike of international subscribers to Warner Bros Discovery’s HBO Max and a healthy film slate has helped the US studio to a solid set of Q2 results.

WBD, which is in the midst of splitting up its cable and streaming operations, reported total revenues of $9.8bn, with net income of $1.58bn, having lost $10bn a year earlier following a writedown of its networks arm.

HBO Max subscribers watching shows such as break-out US hit The Pitt and the third run of The White Lotus hit 125.7 million, a bump of 3.4 million, of whom 3.2 million were from international markets.

The US studio group picked out Australia as a particular highlight, with HBO Max’s recent launch in the country described as “very successful”.

WBD said it is aiming to hit 150 million streaming subscribers by the end of 2026, a year in which the streamer will be rolled out in key markets such as the Germany, Italy and the UK.

Direct-to-consumer revenue was up 8% to $2.8bn with a $293m profit, up from a $107m loss a year earlier, but advertising revenues fared less well, declining 10% (excluding effects of foreign exchange).

Global linear network revenues were down 9% to $4.8bn on 2024 as profits slumped 25%, although they still stood at $1.5bn down 25% on a year earlier.

Studios revenue was up 54%, however, hitting $3.8bn, with theatrical revenue up 38%, helped by films such as A Minecraft Movie. Total adjusted EBITDA rose 9% to come in at $2bn.

WBD chief David Zaslav said the company had made “substantive progress” against its “strategic attack plan”, including “returning our studios to industry leadership, scaling HBO Max globally, and optimizing our Global Linear Networks.”

He added: “Together, this array of success will help establish both Warner Bros. and Discovery Global as two strong and sustainable independent entities as we proceed towards our planned separation.”