Advanced Television

WBD Q1 revenue flat, but takes $2.9bn hit on Netflix fee

May 7, 2026

Warner Bros Discovery (WBD) has reported its Q1 2026 revenues to March 31st – perhaps the last time the organisation reports results as a lone entity ahead of its Paramount Skydance merger. Total revenues were $8.9 billion (€7.5bn), a 3 per cent ex-FX decrease from the prior year quarter, in line with expectations.

“Distribution revenues were relatively unchanged compared to the prior year quarter, as dynamic underlying growth in global streaming subscribers was offset by continued domestic linear pay -TV subscriber declines and the impact of the HBO Max domestic distribution deal renewal with a former related party, previously disclosed in the second quarter of 2025,” the company said in its earning report.

Advertising revenues decreased 8 per cent ex-FX, as ad-lite streaming subscriber growth was more than offset by the absence of the NBA along with continued domestic linear audience declines. The absence of the NBA in the current year negatively impacted the year-over-year growth rate by 7 per cent ex-FX.

Streaming revenues in the quarter rose 7 per cent to $2.9 billion and the studios grew 31 per cent to $3.1 billion. Linear television revenue declined 9 per cent to $4.4 billion.

Net loss available to WBD was $2.9 billion, which includes $1.3 billion of pre-tax acquisition-related amortisation of intangibles, content fair value step-up, and restructuring expenses. Additionally net loss available to WBD, includes the $2.8 billion termination fee paid to Netflix after cancelling its planned separation and sale of Streaming and Studios to the streaming giant.

In a letter to shareholders, WBD said: “We continue to deliver strong progress across our strategic and operational priorities. From sports to news to general entertainment, our Networks continue to distinguish themselves through both reach and relevance with investment in content categories and genres that inspire fans. At the same time, the investments we made in HBO Max’s content, marketing, product and technology, and global footprint are delivering strong returns as evidenced by accelerating subscriber-related revenue growth and meaningful Adjusted EBITDA. Finally, thanks to the hard work of many, our Studios are again winning critically and financially, creating culture-defining film and television, and progressing towards our $3 billion+ Adjusted EBITDA goal. Across the board, these businesses are competing increasingly effectively in each of their respective markets and moving into the next chapter with strong momentum.”

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