Warner Bros. revenues Discovery in the last quarter of last year reached the level of USD 9.5 billion, which is a result in line with analysts' forecasts.
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The biggest increase was recorded by the streaming group, whose revenues increased by 5%, reaching almost $2.8 billion. During this time, HBO Max gained 3.5 million new users, which increased its global subscriber base to 131.6 million.
Still, the streaming group's adjusted profits fell 4%. to USD 393 million, which the company explains by the expiration of one of the distribution agreements.
Traditional media under pressure. Warner Bros. Discovery with a sharp decline in revenues
The situation in the traditional business segments of Warner Bros. Discovery, however, looks much worse. Revenues from film and television production dropped by 23%, reaching $728 million. No significant theatrical releases during the holiday season and delays in TV content contract renewals contributed to 18%. decline in revenues in this segment.
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Discovery Linear Networks' traditional pay-TV group also saw declines. The revenues of this unit decreased by 12%. to $4.2 billion, and adjusted revenue fell 27%. up to USD 1.4 billion
Investors are waiting for decisions on future contracts
In the face of declines in key areas of activity, investors' attention is focused on talks regarding potential transactions. The company's management confirmed that no decision has been made yet whether Paramount's offer is more favorable than the current cooperation with Netflix. If Paramount presents more attractive terms, Netflix will have four business days to submit a better offer.
Read also: Sale of the owner of TVN. The giant returns to the game for Warner Bros. Discovery
Although Warner Bros. As Discovery seeks to expand its digital segments, challenges with traditional media and uncertainty around key deals may impact the company's continued growth.
