WBD revenues dip 6% but profits rise

Warner Bros. Discovery (WBD) has posted a 6% year-on-year decline in its Q3 revenues, including a 17% fall in advertising, but profits rose 7%. 

Total revenues came in at $9bn (£6.88bn), with WBD pointing to comparisons against a strong period this time last year, driven by coverage of the Paris Olympics. 

Revenue from channels and streaming distribution was down 4%, despite HBO Max seeing subscriber numbers rise by 2.3 million across the past three months, taking its overall count to 128 million. 

Australia, where HBO Max launched earlier this year, was picked out for particular praise, and adjusted EDITDA from streaming was up 24% YoY.  

WBD is preparing to launch HBO Max in the UK, Italy and Germany next year, with targets to hit 150 million subs globally by the end of next year. That roll-out is continuing alongside a broader planned split to create Warner Bros. (streaming and studios) and Discovery Global (global networks).

Underlining the diverging prospects for the two entities, revenue from global linear networks was down 23% and adjusted EBITDA dropped 20% in Q3, but margins stood at 44%. 

Advertising revenues were also hit, as ad-lite streaming subscriber growth was more than offset by domestic linear audience declines. 

Total adjusted EBITDA was $2.5bn, a 2% YoY increase, primarily due to growth in the streaming and studios segments. 

Content revenues decreased 3%, again blamed on the impact of sub-licensing Olympic sports rights last year. WBD said that content revenues excluding the impact of the 2024 Olympics had increased 23%. 

In a note to shareholders, WBD – which is at the centre of takeover speculation - pointed to shows such as The Pitt and The Penguin as key titles, while It: Welcome to Derry drew 15 million viewers in its first week. 

WBD also said it expects 2026 to mark the first time it will deliver more scripted episodes to streamers than broadcast and cable networks. 

The company added: “We are now realising the benefits of this evolving shift as titles begin to revert to the WBTV library upon expiration of their initial exclusivity period, enabling us to further monetise these titles in subsequent windows.”