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Warner Bros. Misses EPS Expectations
WBDWarner Bros. Discovery(WBD) The Motley Fool·2025-02-27 13:55

Core Insights - Warner Bros. Discovery reported mixed financial results for Q4 2024, with EPS at -0.20,missinganalysts′expectationsof−0.20, missing analysts' expectations of -0.02 by 0.18,andrevenueat0.18, and revenue at 10.03 billion, below the estimate of 10.16billion[2][3]FinancialPerformance−Revenuedecreasedby2.510.16 billion [2][3] Financial Performance - Revenue decreased by 2.5% year-over-year from 10.28 billion to 10.03billion,missingestimates[3][6]−Netincomewasreportedat−10.03 billion, missing estimates [3][6] - Net income was reported at -494 million, a decline of 23.5% from -400millioninQ42023[3]−AdjustedEBITDAimprovedby10.2400 million in Q4 2023 [3] - Adjusted EBITDA improved by 10.2% year-over-year to 2.72 billion [3][10] - Free cash flow decreased by 26.6% to 2.43billion[3][10]SegmentPerformance−TheDirect−to−Consumer(DTC)segmentsawarevenueincreaseof52.43 billion [3][10] Segment Performance - The Direct-to-Consumer (DTC) segment saw a revenue increase of 5% to 2.65 billion, with a net addition of 6.4 million subscribers, totaling 116.9 million [9] - The Studios segment experienced a 15% revenue increase to 3.66billion,drivenbyenhancedcontentlicensing[7]−TheNetworkssegmentfaceda53.66 billion, driven by enhanced content licensing [7] - The Networks segment faced a 5% revenue decline, primarily due to a 17% drop in advertising revenue [8] Strategic Focus - The company is focusing on expanding its DTC platforms internationally to capture new customer bases and enhance competitiveness in the streaming industry [12] - Warner Bros. Discovery aims to improve profitability and manage its high debt levels, which stood at 34.6 billion at the end of the quarter [13] - The company is prioritizing content innovation and leveraging its extensive intellectual property to sustain growth [13]