Advanced Television

WBD adds 2.3m streaming subs in Q3

November 6, 2025

Warner Bros. Discovery (WBD) has reported financial results for the quarter ended September 30th 2025, with total Q3 revenues down 6 per cent at $9 billion (€7.8bn).

In a letter to shareholders, WBD said: “We continue to deliver on our operational and strategic priorities, making great progress during the third quarter in returning our Studios to industry leadership, scaling HBO Max globally, and optimising our Global Linear Networks.”

The letter reiterated that the Board is evaluating a “broad range of strategic options”, including proceeding with the planned separation, a potential transaction for the entire company, or separate transactions for the Warner Bros. and/or Discovery Global businesses.

During the quarter, WBD added 2.3 million net subscribers to reach 128 million global streaming subscribers, representing 16 per cent growth year-over-year. The company said it “remains on a clear path towards at least 150 million Streaming subscribers by the end of 2026”.

HBO Max is now available in more than 100 global markets following its recent launch in several smaller markets in EMEA and
APAC. “Subscriber growth was attributable, in part, to penetration gains from existing markets, with strong consumer uptake in newer markets, such as Australia. As noted last quarter, the early success in Australia bolsters our confidence in our upcoming launches in Italy, Germany, the United Kingdom, and Ireland – all markets where, like Australia, we have previously licensed HBO and WB Studios content to a distributor, and there is familiarity with the HBO brand and key titles and franchises,” added the letter.

Q3 Financial Highlights:

    • Distribution revenues decreased 4 per cent ex-FX, as dynamic underlying growth in global streaming subscribers was more than offset by continued domestic linear pay TV subscriber declines and the first full quarter impact of the HBO Max domestic distribution deal renewal with a former related party, previously disclosed in Q2.
    • Advertising revenues decreased 17 per cent ex-FX, as ad-lite streaming subscriber growth was more than offset by domestic linear audience declines.
    • Content revenues decreased 3 per cent ex-FX, primarily driven by the sublicensing of Olympic sports rights to broadcast networks throughout Europe in the prior year partially offset by the stronger performance of the theatrical releases in the current year quarter. Content revenues excluding the impact of the 2024 Olympics in Europe increased 23 per cent ex-FX.
  • Net loss available to WBD. was $148 million, which includes $1.3 billion of pre-tax acquisition-related amortization of intangibles, content fair value step-up, and restructuring expenses.
  • Total Adjusted EBITDA was $2.5 billion, a 2 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 $500 million of separation-related items.
  • The Company repaid $1.2 billion of debt during the quarter, including $1 billion of the bridge loan facility.
  • The Company ended the quarter with $4.3 billion of cash on hand, $34.5 billion of gross debt, and 3.3x net leverage.

“We continue to focus on executing against our key strategic pillars and moving with momentum towards our planned separation alongside the Board’s process to review and evaluate strategic alternatives. The investments we have made in strengthening our operating capabilities throughout the organisation over several years are delivering significant returns, and we intend to continue to capitalise on that hard work,” concluded the shareholder letter.

Categories: Articles, Business, Results

Tags: , ,