Warner Bros Discovery (WBD) has reported total Q1 revenue of $8.98 billion (€7.9bn), a 9 per cent ex-FX decrease compared to the prior year quarter, and below analyst expectations.

However, the global streaming segment saw strong growth in the quarter with a net gain of 5.3 million subscribers and 22.6 million net adds year-on-year, bringing the total subscriber base to 122.3 million. Streaming revenue increased 8 per cent to $2.65 billion.

Distribution revenues decreased 1 per cent ex-FX, as growth in global streaming subscribers was more than offset by continued domestic linear pay-TV subscriber declines.

Advertising revenues decreased 8 per cent ex-FX, as ad-lite subscriber growth was more than offset by domestic linear audience declines.

Content revenues decreased 25 per cent ex-FX, primarily attributed to lower box office and home entertainment revenues due to the stronger performance of the Q1 2024 theatrical releases and carryover from the Q4 2023 releases, as well as no video games releases in Q1.

In a letter to shareholders, the media and entertainment giant said: “In 2025, Warner Bros Discovery (WBD) has shown an exceptional ability to create breakthrough content and tell stories that capture the world’s attention. Nowhere is this more evident than on Max, where our continued momentum stems from two factors working powerfully together: creating the world’s most resonant stories and delivering them to global audiences. We believe this combination of creative excellence and worldwide distribution is both fueling operating success and creating long- term shareholder value.”

“Max continues to differentiate itself through its unwavering commitment to quality, curating premium storytelling that’s not just watched but truly savored – delivering one of television’s few ‘lean-in’, appointment-viewing experiences. The recently completed third season of The White Lotus [pictured] is a strong example; each episode helped shape our cultural zeitgeist, while echoing loudly across global social media. In total, the season has thus far averaged more than 25 million global viewers per episode, pacing more than 40 per cent ahead of season two. Similarly, with The Pitt, Max seized a unique opportunity to break into a new category by delivering an elevated, efficiently produced, episodic medical drama. In its debut season, the show resonated with both audiences and critics alike, demonstrating week-over-week viewership growth. So far, the series has averaged over 12 million viewers worldwide across each of its 15 episodes. Because of its success, we were excited to greenlight a second season, which will begin filming shortly for viewers to enjoy starting in January 2026.”

“Our content’s resonance combined with continued global expansion and subscriber growth are reflected in our financial performance. During the first quarter, our Streaming segment added over five million subscribers and generated $339 million of Adjusted EBITDA, positioning us firmly on track to deliver at least $1.3 billion of Streaming Adjusted EBITDA in 2025. We remain confident in our path to surpass 150 million subscribers by the end of 2026 with strong corresponding Streaming revenue and EBITDA growth.”

“Momentum continues into the second quarter with the recent premiere of season two of The Last of Us, as well as season four of the Emmy-award winning Hacks. In the coming weeks, we will release new seasons of The Gilded Age, Peacemaker and And Just Like That. As we continue to scale, combining these popular tentpole titles with locally relevant stories and premium local sports is further differentiating Max’s offering in an increasingly crowded streaming marketplace.”

“At the same time, while our first quarter film slate underperformed expectations, more recently Warner Bro. Motion Pictures is demonstrating strong momentum. This success is being driven by the performance of both A Minecraft Movie, which has grossed nearly $900 million in global box office sales, and Sinners, which opened to both commercial and critical success, with roughly $250 million in current global box office proceeds. In the coming months, the full power of WBD will be on display across platforms in every market to drive awareness and anticipation for our next tentpole film, Superman, arriving July 11th. The eventual arrival of these three titles – A Minecraft Movie, Sinners and Superman – exclusively on Max will only further enhance our streaming platform’s immense value to subscribers.”

“Finally, given the challenging and uncertain environment, we remain focused on optimising our Global Linear Networks’ performance and maximising cash flows through cost discipline and prudent content investment. As part of this strategy, whether it’s offering pay-TV subscribers authenticated access to the Max ad-lite tier or providing incremental bundling and packaging flexibility, we are partnering with distributors to enhance the value of pay-TV subscriptions.”

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Categories: Articles, Business, Results

Tags: HBO, MAX, WBD, white lotus