Warner Bros. Discovery on Thursday announced a strong first-quarter showing for its streaming unit, even as its studios’ division underperformed and it fell short of Wall Street’s expectations.
The direct-to-consumer (DTC) unit — which includes streaming services like Max and premium TV like HBO — turned a first-quarter profit of $86 million for the January to March quarter, compared to $50 million last year. In 2023, the New York-based entertainment giant became the first company to make streaming profitable over the course of a full year.
During the first quarter of 2024, Warner Bros. said it added 2 million DTC subscribers, bringing its total to 99.6 million.
“We continue to make bold moves to transform our company for the future as we position ourselves to take full advantage of the opportunities ahead,” CEO David Zaslav said in a statement, after touting the success of Max and its upcoming “strongest ever” lineup of content. Warner Bros. on Wednesday announced a new streaming bundle with the Walt Disney Co. that will come this summer and include Disney+, Hulu, and Max.
Despite its success in streaming, Warner Bros. reported a 7% year-over-year drop in revenue to $9.96 billion, below analyst expectations of $10.2 billion. It also reported net loss attributable to the company of 40 cents per share, compared to a loss of 24 cents per share.
Warner Bros. Discovery stock dropped 4% on Thursday.
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