Warner Bros. (WBD.US) Q4 net loss expanded to 494 million, streaming business growth countered TV network decline.

Warner Bros. (WBD.US) has released its fourth quarter and full-year financial report, showing a certain degree of decline in overall revenue. Specifically, fourth quarter revenue decreased by 2% from the same period last year to $100.3 billion, down from $102.8 billion. The full-year revenue for 2024 was $393.2 billion, a 5% decrease from $413.2 billion in 2023. In terms of profitability, Warner Bros. reported a net loss of $494 million in the fourth quarter of 2024, or a loss of 20 cents per share, compared to a net loss of $400 million, or a loss of 16 cents per share, in the fourth quarter of 2023. However, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $2.7 billion, exceeding Wall Street's expectations of $2.66 billion. Analysts attribute Warner Bros.' fourth quarter revenue to fall below expectations to the drag from traditional TV business. However, its streaming service is gaining new subscribers, with total revenue for the department in the fourth quarter totaling $26.5 billion, a 5% increase from $25.3 billion in the same period last year, with flagship service Max leading the way. The department's adjusted EBITDA was $409 million, while it had a loss of $55 million in the same period last year. The company stated that global streaming subscribers increased by 6.4 million in the fourth quarter of last year, reaching a total of 116.9 million users. Furthermore, Warner Bros.' direct-to-consumer division (including its Max streaming service) showed improvement, with adjusted EBITDA of $409 million, exceeding analysts' expectations of $273 million. Warner Bros. also added 6.4 million Max users in this quarter, with strong momentum since launching the service in Latin America and Europe last year, with increased advertising on the platform. In terms of business adjustments, Warner Bros. closed three video game studios and canceled the highly anticipated "Wonder Woman" game to increase profitability in its interactive entertainment business. It is worth mentioning that in December of last year, the company announced plans to restructure its business into two divisions: one focusing on streaming and studios, and the other on cable TV networks. This move may help the company better navigate deals in an environment where other traditional media giants are seeking mergers or cooperation to cut costs. As for the studio business, fourth quarter revenue totaled $36.6 billion, a 15% increase from $31.7 billion in the same period last year. In terms of TV network business, fourth quarter revenue was $47.7 billion, down from $50.4 billion in the same period last year. The company had previously written down $9.1 billion for its network business in its second quarter earnings report for 2024.