Warner Bros Discovery posts surprise profit as Olympics boost streaming

(Reuters) -Warner Bros Discovery (NASDAQ:WBD ) missed Wall Street estimates for third-quarter revenue on Thursday, as its studio business took a hit from fewer blockbuster releases.

With releases such as "Beetlejuice Beetlejuice" in the July-September quarter, Warner Bros Discovery's studio division has struggled to repeat last year's explosive success of Margot Robbie-starrer "Barbie", the highest grossing film of 2023.

However, the company's streaming segment added 7.2 million direct-to-consumer subscribers in the third quarter, beating estimates for 6.28 million additions, according to data compiled by Visible Alpha.

Warner Bros Discovery's streaming platform, Max, entered Europe weeks before the Olympic Games in Paris with exclusive rights to stream the highly anticipated sporting event, resulting in a boost in subscribers.

The streaming business, which includes the Max and Discovery+ services, reported adjusted earnings before interest, taxes, depreciation and amortization of $289 million, which more than doubled from a year earlier.



Revenue at the TV networks division, which includes Discovery Channel, Animal Planet and Food Network, rose 3% to $5.01 billion, primarily driven by sublicensing of Olympic sports rights to regional broadcast networks throughout Europe.

The company reported revenue of $9.62 billion for the three months ended Sept. 30, compared with analysts' average estimate of $9.80 billion, according to data compiled by LSEG.

Source: Investing.com