NEW YORK—Warner Bros. Discovery reported impressive gains in its global streaming subscriber numbers, adding more net Max subs than during any quarter since the streaming service launched. That boosted the company stock by more than 10% by 2 p.m. (ET) on Nov. 7 despite hefty Q3 declines in advertising and distribution revenue from its traditional pay TV networks.
Overall, global direct-to-consumer subscribers hit 110.5 million at the end of Q3, an increase of 7.2 million subscribers vs. Q2, with the most new subscribers coming from outside the U.S.
Domestic subscribers rose by 0.2 million to 52.6 million in Q3 versus Q2 2024, but were about the same as they were a year earlier.
Total corporate revenue declined by 4% to $9.673 billion in the third quarter, compared to a year earlier, but net income was a positive $136 million, versus a $417 million loss in Q3 2023.
WBD’s networks segment saw distribution revenue decline by 8% year-over-year while advertising dropped a whopping 13%. Adjusted earnings before interest taxes depreciation and amortization (EBITDA) in the division fell by 12% from a year earlier.
DTC revenues increased 9% excluding the impact of foreign currency changes (ex-FX) to $2,634 million compared to the prior-year quarter. Advertising revenue in the DTC segment increased 51% ex-FX, primarily driven by an increase in domestic ad-lite subscribers. Meanwhile, DTC operating expenses increased by only 1% ex-FX to $2,345 million compared to the prior year quarter.
DTC adjusted EBITDA was $289 million, a $178 million increase in adjusted EBITDA vs. the prior year. Those results included a $41 million loss from the broadcast of the Paris Summer Olympics in Europe.
