On February 27, 2025, Warner Bros. Discovery Inc (WBD, Financial) released its 8-K filing for the fourth quarter and full-year 2024 results, revealing a mixed financial performance amid challenging market conditions. The company reported total revenues of $10.0 billion for the fourth quarter, a 2% decrease from the previous year, falling short of the analyst estimate of $10,190.98 million. The net loss available to Warner Bros. Discovery Inc was $494 million, translating to a loss per share of $0.20, which is below the estimated earnings per share of $0.05.
Company Overview
Warner Bros. Discovery Inc (WBD, Financial) was formed in 2022 through the merger of WarnerMedia and Discovery Communications. The company operates in three global business segments: studios, networks, and direct-to-consumer (DTC). Its studios segment is renowned for producing and distributing movies and television shows, while the networks segment includes popular cable networks like CNN, TNT, and HGTV. The DTC segment encompasses streaming platforms such as HBO Max and Discovery+, which are available in over 60 countries.
Performance and Challenges
Warner Bros. Discovery Inc faced several challenges in the fourth quarter of 2024. The company experienced a 12% decline in advertising revenues, primarily due to domestic linear audience declines and a soft advertising market. Content revenues also saw a slight decrease of 2%. Despite these challenges, the company reported a 16% increase in other revenues, driven by growth in global DTC subscribers.
Financial Achievements
Despite the revenue decline, Warner Bros. Discovery Inc achieved a 10% increase in Adjusted EBITDA, reaching $2.7 billion, primarily due to growth in the DTC and studios segments. The company ended the quarter with 116.9 million DTC subscribers, an increase of 6.4 million from the previous quarter, highlighting the strength of its streaming platforms.
Key Financial Metrics
The company's financial statements reveal important metrics that are crucial for understanding its performance:
| Metric | Q4 2024 | Q4 2023 | % Change |
|---|---|---|---|
| Total Revenues | $10,027 million | $10,284 million | (2)% |
| Net Income (Loss) | $(494) million | $(400) million | 24% |
| Adjusted EBITDA | $2,722 million | $2,471 million | 10% |
| Free Cash Flow | $2,429 million | $3,310 million | (27)% |
Analysis of Performance
Warner Bros. Discovery Inc's performance in Q4 2024 reflects the ongoing challenges in the media industry, particularly in traditional linear television. The decline in advertising revenues and content sales underscores the shift towards digital and streaming platforms. However, the company's growth in DTC subscribers and improved Adjusted EBITDA indicate a successful pivot towards digital content delivery.
Overall, Warner Bros. Discovery Inc's financial results highlight the importance of adapting to changing consumer preferences and market dynamics. The company's focus on expanding its streaming services and optimizing its content offerings will be crucial for future growth and profitability in the competitive media landscape.
Explore the complete 8-K earnings release (here) from Warner Bros. Discovery Inc for further details.
