Warner Bros Discovery Streaming Revenue Beats Estimates
Warner Bros Discovery reported a 9% increase in streaming revenue to $2.89 billion as HBO Max expanded its international footprint. While the company posted a $2.92 billion net loss due to a merger-related termination fee, total revenue of $8.89 billion remained largely in line with analyst expectations.
WARNER BROS DISCOVERY INC grew streaming revenue 9% to $2.89 billion in the first quarter as international expansion fueled subscriber gains. The results beat LSEG analyst estimates of 7.6% growth despite a widened net loss of $2.92 billion. Scaling the direct-to-consumer business is critical for WBD to compete with larger rivals in the United States and global markets.
### Global Expansion Offsets Domestic Ad Slump The streaming unit's performance outpaced expectations during the first quarter, ending March with 140 million subscribers. Chief Executive David Zaslav told analysts on a conference call that HBO Max serves as the linchpin for the company's growth strategy. This international rollout helped mitigate a 7% drop in total advertising revenue caused by the absence of NBA content and shrinking linear TV audiences.
