Warner Bros Discovery revenue disappoints on soft ad sales, weaker box office performance
WBD•Film slate and merger outlook
Warner's film slate is weighted toward the second half of the year, with major releases such as "Digger" and "Dune: Part Three" expected to boost box-office performance.
The unit is central to Warner Bros' $110 billion merger with Paramount, with the combined HBO Max and Paramount+ platforms expected to give the company greater scale to compete with streaming giants Netflix and Disney.
The merger remains tied up in court, with California and 11 other states seeking to block it on antitrust grounds. Paramount has agreed to pause the deal until June 2027, while a federal trial is set for March 2027.
Streaming remains a bright spot
The streaming business remained a bright spot, with revenue rising 10% as HBO Max's international expansion and original content like "The Pitt", "Euphoria" and "House of the Dragon" helped drive subscriber growth.
Quarterly revenue misses expectations
Aug. 6 (Reuters) - Warner Bros Discovery missed second-quarter revenue expectations on Thursday, hurt by lackluster box-office performance and soft advertising sales due to the absence of NBA games.
Warner Bros Discovery reported revenue of $8.72 billion in the second quarter, well below the LSEG-compiled estimate of $9.29 billion.
Studio and advertising weakness weigh on results
Studio revenue slumped 39%, with releases including "Mortal Kombat II" and "Supergirl" failing to replicate the blockbuster success of last year's top grosser "A Minecraft Movie" and "Sinners".
The absence of National Basketball Association game broadcasts this year, coupled with declines in domestic linear TV audiences, drove a 22% drop in advertising revenue.
