Warner Bros. Discovery, Inc
Studios revenues were $2.58 billion, down by 24% ex-FX Y/Y on a pro forma combined basis. Content revenue decreased 25% ex-FX due to lower games, home entertainment, and theatrical revenues.
Networks revenues were $5.76 billion, down by 5% ex-FX, on a pro forma combined basis.
Distribution revenue decreased 1% ex-FX, primarily driven by increases in U.S. contractual affiliate rates, which were more than offset by declines in U.S. pay-TV subscribers.
Advertising revenue fell 13% ex-FX, primarily driven by audience declines in domestic general entertainment and news networks and soft advertising markets, mainly in the U.S. The absence of NCAA March Madness Final Four and Championship impacted the year-over-year growth rate in the quarter.
DTC revenues were $2.73 billion, up 14% ex-FX Y/Y on a pro forma combined basis. Distribution revenue increased 2% ex-FX, as global Max/HBO Max retail subscriber and Amazon Prime Video Channels subscriber growth were partially offset by a decline in wholesale subscribers.
Total DTC subscribers decreased by 1.8 million to 95.8 million at the end of Q2 vs. 97.6 million subscribers at the end of Q1. Global DTC ARPU was $7.71.
WBD generated $2.01 billion in operating cash flow and held $3.03 billion in cash and equivalents. Net loss was $(1.24) billion.
Warner Bros. Discovery said the WGA strike would likely affect operating cash flow by ~$100 million.
Price Action: WBD shares traded higher by 3.59% at $12.10 in the premarket on the last check Thursday.
