Warner Bros. Discovery (WBD) reported flat revenue of $9.81 billion for the fiscal second quarter, missing analyst estimates. Earnings per share (EPS) of 63 cents exceeded estimates. The company reported a net income of $1.58 billion, compared to a loss of $9.99 billion year-on-year (Y/Y), alongside an adjusted EBITDA of $1.95 billion, showing a 9% growth. Distribution revenues were flat at $4.89 billion, while advertising revenues decreased by 10% to $2.22 billion due to domestic declines. Content revenues increased by 16% to $2.47 billion, driven by higher box office revenues. Warner Bros. ended the quarter with 125.7 million subscribers, generating $983 million in operating cash flow and $702 million in free cash flow with $4.9 billion in cash and equivalents. Streaming revenues increased by 8% to $2.79 billion, with a 9% increase in distribution revenue. Advertising revenue increased by 17%, while global streaming ARPU decreased by 11%. Content revenue decreased by 21% due to HBO Max’s international expansion. Studios revenues increased by 54% to $3.80 billion, and adjusted EBITDA for the segment was $863 million, up from $210 million Y/Y. Global Linear Networks revenues decreased by 9% to $4.80 billion, with an overall expectation to reach at least $2.4 billion in adjusted EBITDA for the full year. Warner Bros. projects $1.3 billion in streaming adjusted EBITDA for full-year 2025. The company is on track to separate from Discovery Global Media in mid-2026, with WBD stock trading lower by 6.92% at $11.91.

Read more at Yahoo Finance: Warner Bros. Discovery Hits Profit Turnaround, Thanks To Theaters, Not TV