Warner Bros. Discovery has reported impressive financial results for the second quarter, showcasing a robust performance across its theatrical and streaming divisions.
Warner Bros. Discovery Sees Growth in Second Quarter
A strong performance at the box office has significantly boosted Warner Bros. Discovery in the second quarter, with hits ranging from A Minecraft Movie to Sinners. The theatrical revenue increased by 38% as the company gears up for its split into two entities.
Financial Overview
Total revenue remained steady at $9.8 billion, aligning with forecasts. The company reported a net income of $1.58 billion for the three months ending in June, a remarkable turnaround from a staggering loss of nearly $10 billion the previous year.
Stock Performance and Future Plans
A year ago, in the second quarter of 2024, the stock dipped below $7 to an all-time low, following an $11 billion write-down primarily in its networks division after losing the NBA rights. Since then, the share price has nearly doubled to around $13, and WBD has secured agreements with the top six largest distributors. The standalone linear networks company, Discovery Global, is set to split from a streamlined Warner Bros. by mid-2026.
Studio Successes
The Motion Picture Group, led by co-chairs Pamela Abdy and Michael De Luca, released Final Destinations: Bloodlines and The Accountant 2, and partnered with Apple for F1 The Movie. The Studios division experienced a 60% increase in revenue, reaching $3.8 billion, with profits soaring to $863 million from $210 million.
Streaming Growth
Streaming services, particularly HBO Max, added 3.4 million subscribers, bringing the total to 125.7 million. The second quarter featured the conclusion of the first season of The Pitt, one of the most successful debut shows of 2025, alongside the third season of The White Lotus, which averaged over 26 million viewers per episode, a 40% increase from Season 2.
International Expansion
HBO Max has expanded into Australia as part of its international rollout. CEO David Zaslav aims for the service to reach 150 million subscribers by the end of next year, with plans to enter the UK, Germany, Italy, and other markets.
Direct-to-Consumer Revenue
Direct-to-consumer revenue rose by 8% to $2.8 million, shifting to a profit of $293 million from a loss of $107 million the previous year.
Company Structure and Future Outlook
Warner Bros. will encompass Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, HBO Max, and Warner Bros. Gaming Studios, all under Zaslav’s leadership. Discovery Global will include CNN, TNT Sports in the U.S., Discovery, free-to-air channels across Europe, the Discovery+ streaming service, and Bleacher Report.
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However, global networks revenue fell by 9% to $4.8 billion, with profits declining by 25% to $1.5 billion. Advertising revenue dropped by 13%, primarily due to a 23% decline in domestic audiences.
Linear challenges have prompted WBD to follow Comcast in separating its networks from the expanding streaming and studio operations. The company revealed its post-split leadership in late July.
In conjunction with the separation, WBD successfully completed a tender offer and consent solicitation, repaying a $1.5 billion term loan due in 2026, financed by a $17 billion bridge facility, resulting in a $2.2 billion reduction in gross debt. Additionally, the company repaid $500 million of debt due in the quarter, leading to a total reduction of $2.7 billion in gross debt during Q2.
“We made substantial progress against each element of our strategic attack plan: returning our studios to industry leadership, scaling HBO Max globally, and optimizing our Global Linear Networks. This array of successes will help establish both Warner Bros. and Discovery Global as two strong and sustainable independent entities as we proceed towards our planned separation,” Zaslav stated in a letter to shareholders.
He will lead a call with analysts at 8 ET.
