Anjali Sundaram CNBC
Warner Bros. Discovery reported a 13% drop in revenue and consistent growth in streaming subscribers for its first fiscal quarter on Tuesday. The results do not include WarnerMedia’s first quarter, which Discovery bought this month.
The company had revenue of $ 3.16 billion and revenue of $ 456 million. Shares rose 2% in pre-market trading.
Here are the key numbers:
- Earnings per share: 69 cents, up from 21 cents in the first quarter of last year
- Income: $ 3.1 billion in the first quarter of last year, compared to $ 2.79 billion
- Discovery streaming clients: 24 million, 2 million more than the previous quarter
The newly combined Warner Bros. Discovery, which closed on April 8 as a result of the merger of WarnerMedia-Discovery, is being released as a free-to-play media company that investors can compare to Disney, Netflix and Paramount Global. CEO David Zaslav hopes to show the assets of the new entity to Wall Street, including HBO Max and Discovery + streaming services, that they can compete worldwide to gain market share against the world’s largest entertainment companies.
“We are bringing together a strategic framework and organization to grow our business and maximize the value of our stories, news and sports to promote our balanced vision,” Zaslav said in a statement. “I couldn’t be more excited about the tremendous opportunity ahead.”
WarnerMedia-Discovery has a combined market value of more than $ 50 billion.
Zaslav took the first steps in facilitating the company’s operations when CNN + opened and closed a few weeks ago.
Zaslave wants to combine HBO Max and Discovery + in a unified streaming service. The company has not announced whether or not the new combined product will be renamed.
“Clearly, we will take swift and decisive action, as you saw with CNN + last week,” Zaslav said in the company’s earnings call.
Prior to that effort, Discovery began removing its Discovery + promotion during the first quarter. The company said sales, general expenses and administrative expenses were down 25% during the period, mainly due to lower Discovery + marketing expenses compared to last year.
Warner Bros. Discovery said it added 2 million streaming subscribers to Discovery in the quarter, for a total of 24 million. That’s in line with the $ 2 million added in the fourth quarter.
Last week, AT&T reported that HBO and HBO Max had 76.8 million subscribers at the end of the first quarter of 2022. The announcement indicated that WarnerMedia was the last time it would be part of AT & T’s earnings report.
SEE: Why CNN + is shutting down
Warner Bros. Discovery (WBD) Q1 earnings for 2022
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