Warner Bros. Discovery framed its streaming business as its growth engine in its first-quarter 2025 earnings report Thursday, noting that it had added 5.3 million subscribers to a total of 122.3 million, and grew streaming revenue by 8% to $2.7 billion and adjusted EBITDA to $339 million.
In a shareholder letter, WBD CEO David Zaslav underscored that Max’s focus appears to be diverting somewhat from the big, broad offering the company had initially pitched.
“It has become increasingly clear that Max stands apart on quality. Its unique recipe for success blends HBO and Max original premium storytelling, locally produced series, premium local sports, and a breadth of blockbuster and distinctive movies — all delivered with a consistently high standard of quality that few can match,” he wrote.
The company largely beat Wall Street expectations in the quarter, though both its linear TV businesses and its studios division saw revenues decline from the same quarter a year ago.
Total revenues were $9 billion, down 10% from the same quarter a year ago, with a net loss of $453 million (an improvement from a year ago), and adjusted EBITDA of $2.1 billion, essentially flat. Free cash flow was $302 million, a decline of 23%.
In linear TV, revenues were $4.8 billion, down 7% from a year ago, with adjusted EBITDA of $1.8 billion, down 15% from a year ago. In studios, revenues fell by 18% to $2.3 billion, with adjusted EBITDA rising to $259 million. Studio revenues benefitted from Warner Bros. TV, while film struggled due to a lighter theatrical slate. The company, however, notes that both A Minecraft Movie and Sinners will bolster its Q2 performance.
The company also debuted its new corporate structure in the first quarter, with Zaslav framing it as presenting the company with new optionality.
“Importantly, the transparency fostered by this new structure will improve strategic optionality and flexibility to pursue potential opportunities as they arise,” he wrote. “As we have noted in the past, we believe the existing ecosystem, including content producers and both networks and streaming distribution platforms, will undergo significant change. With added flexibility and expanded pathways to create shareholder value as a result of this new structure, our board of directors now has a greater number of tools at its disposal as it evaluates and enacts changes.”