Warner Bros. Discovery Q1 2025: Revenue Drops to $9.96B, Net Loss Widens to $966M
Discover Warner Bros. Discovery's Q1 2025 financial results showing a 7% revenue decline to $9.96 billion and a net loss of $966 million. Explore the impact of NBA broadcasting negotiations and a new Disney streaming bundle on the company's future outlook.
UPDATE—May 9, 2024: This article has been refreshed with the latest stock price updates.
Key Insights
- Warner Bros. Discovery’s Q1 revenue fell short of projections, dropping 7% year-over-year to $9.96 billion.
- The company reported a net loss of $966 million, nearly double analyst expectations.
- Upcoming NBA broadcasting deal negotiations and a new streaming bundle partnership with Disney could significantly influence future earnings.
In the first quarter of 2024, Warner Bros. Discovery (WBD) experienced a sharper-than-anticipated revenue decline and a wider net loss, causing stock volatility during Thursday’s early trading session.
Revenue and Loss Analysis
WBD’s revenue of $9.96 billion missed the consensus estimate of $10.25 billion, marking a 7% decrease from $10.7 billion in Q1 2023. The net loss expanded to $966 million, surpassing forecasts of $501.7 million, though it improved from a $1.07 billion loss the previous year. Earnings per share were negative 40 cents, slightly better than last year’s 44 cents loss but nearly double the predicted 21 cents.
The studio segment, encompassing film and video game production, saw revenue decline by 12%, while the networks division, including CNN and Turner channels like TNT and TBS, declined by 8%. Direct-to-consumer revenues from HBO Max and Discovery+ remained relatively stable.
Future Outlook: NBA Rights and Disney Collaboration
The company faces potential revenue and cost fluctuations depending on the outcome of its negotiations for NBA broadcasting rights. TNT, a WBD network, has historically aired NBA games and remains in active talks with the league. CEO David Zaslav has expressed a flexible stance on retaining NBA content, emphasizing ongoing constructive negotiations.
Additionally, Warner Bros. Discovery and Disney announced a strategic partnership to bundle Max with Disney-owned streaming services Hulu and Disney+ in both ad-supported and ad-free options, launching this summer. Pricing details are forthcoming.
Following the earnings announcement, WBD shares showed mixed performance, trading up 1.5% to $7.92 by mid-morning but reflecting a year-to-date loss of approximately 30%.
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