WBD adds 3.4m streaming subs in Q2
August 7, 2025
Distribution revenues were relatively unchanged, as growth in global streaming subscribers was offset by continued domestic linear pay-TV subscriber declines. Advertising revenues decreased 10 per cent ex-FX, as ad-lite streaming subscriber growth was more than offset by domestic linear audience declines. Content revenues increased 16 per cent ex-FX, primarily driven by higher box office revenues due to the stronger performance of the theatrical releases in the current year quarter.
The company, owner of HBO Max, ended the quarter with 125.7 million streaming subscribers, an increase of 3.4 million subscribers from Q1. Around 3.2 million of these new subscribers came from international markets, notably following the “very successful” launch of HBO Max in Australia in March. WBD forecasts it will reach 150 million streaming subscribers by the end of 2026.
Further Q2 2025 highlights:
- Net income available to WBD. was $1.6 billion, which includes $1.7 billion of pre-tax acquisition-related amortisation of intangibles, content fair value step-up, and restructuring expenses, as well as a $3 billion pre-tax gain on the extinguishment of debt.
- Total Adjusted EBITDA was $2 billion, a 9 per cent ex-FX increase compared to the prior year quarter, primarily due to growth in the Streaming and Studios segments, partially offset by a decline in the Global Linear Networks segment.
- Cash provided by operating activities was $1 billion. Free cash flow was $0.7 billion. Free cash flow was unfavourably impacted by approximately $250 million of separation-related items.
- In conjunction with the announcement of the separation of Streaming & Studios and Global Linear Networks, the company says it successfully completed a tender offer and consent solicitation, as well as repaid the $1.5 billion term loan due 2026, financed by a $17 billion bridge facility, resulting in a $2.2 billion reduction in gross debt. Additionally, the Company repaid $0.5 billion of debt due in the quarter, resulting in a $2.7 billion total reduction in gross debt during Q2.
- The company ended the quarter with $4.9 billion of cash on hand, $35.6 billion of gross debt, and 3.3x net leverage.
- Studios revenues increased 54 per cent ex-FX to $3.8 billion compared to the prior year quarter.
- Global Linear Networks revenues decreased 9 per cent ex-FX to $4.8 billion compared to the prior year quarter.
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