Warner Bros. Discovery reported a significant decline in second-quarter profits as gains in its streaming division failed to compensate for weakness across other business segments. The media conglomerate, which owns HBO, TNT, and Warner Bros. Studios, saw net income plummet to $149 million from $1.58 billion in the prior year period. Total revenue dropped 11 percent to $8.7 billion, hampered by losses in traditional television advertising and a lighter theatrical release schedule compared to the previous year.
The company faced particular headwinds in its cable television operations, which experienced an 22 percent decline in advertising revenue following the loss of NBA broadcasting rights after the 2025 season. Additionally, television distribution revenue fell as subscriber numbers to its networks contracted by 10 percent. Studio revenue also declined sharply by 39 percent, reflecting a weaker slate of films compared to the year-ago period.
Despite these challenges, Warner Bros. Discovery demonstrated momentum in its streaming business, with revenue surpassing $3 billion for the first time. The streaming segment benefited from a 10 percent revenue increase fueled by global expansion of HBO Max, while advertising and distribution revenue at the platform grew 8 percent and 11 percent respectively.
The company continues to operate under the cloud of its pending acquisition by Paramount-Skydance, which remains tied up in federal court as state attorneys general challenge the merger on antitrust grounds. The trial is expected to begin next year.
Originally reported by Variety →
About the Author
