Warner Bros. Discovery (WBD) reported a fourth-quarter loss, impacted by $1.9 billion in charges and restructuring costs, despite adding 4.6 million subscribers to its streaming platforms.
According to Variety, the company saw overall revenue drop 2% to $10 billion, with declines in distribution and a significant 11% drop in ad sales. WBD noted that the U.S. linear TV advertising market had worsened faster than anticipated, a trend that has affected the broader media sector.
However, the company remains optimistic about its streaming prospects, forecasting that its broadband service Max will reach at least 150 million users by 2026. WBD also projected that its streaming segment would generate approximately $1.3 billion in adjusted earnings by 2025, nearly doubling last year's $677 million.
The company's net loss for the quarter was $494 million, a 24% increase from the $400 million loss reported in the same period last year. Studio operations saw a 15% revenue increase to $3.66 billion, driven by a boost in production following last year’s Hollywood labor stoppages.
On the downside, revenue from TV networks fell 5%, with a notable 28% drop in U.S. audiences. Despite these challenges, direct-to-consumer operations showed growth, adding 6.4 million new global subscribers and increasing revenue by 5% to $2.65 billion.
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