Warner Bros Discovery (WBD) reported fourth quarter losses affected by $1.9 billion in fees and restructuring costs despite adding 4.6 million subscribers to its streaming platform.
Variety said the company had a 2% drop in overall revenue to $10 billion, with a drop in distribution and ad sales significantly lower. WBD pointed out that the US linear television advertising market is getting worse faster than expected. This is a trend that has influenced the broader media sector.
However, the company remains optimistic about its streaming outlook, predicting that broadband service Max will reach at least 150 million users by 2026. WBD predicted that the streaming segment would generate approximately $1.3 billion of adjusted revenue by 2025, nearly double the $677 million last year.
The company’s quarterly net loss was $494 million, up 24% from the $400 million loss reported in the same period last year. The studio business saw revenues increase by 15% to $3.666 billion. This has helped to boost production after Hollywood’s work halt last year.
On the downside, revenue from TV networks fell by 5%, while US audiences fell by 28%. Despite these challenges, consumer operations showed growth, adding 6.4 million new global subscribers and increasing revenue by 5% to $2.65 billion.