Warner Bros. Misses EPS Expectations

Core Insights - Warner Bros. Discovery reported mixed financial results for Q4 2024, with EPS at -$0.20, missing analysts' expectations of -$0.02 by $0.18, and revenue at $10.03 billion, below the estimate of $10.16 billion [2][3] Financial Performance - Revenue decreased by 2.5% year-over-year from $10.28 billion to $10.03 billion, missing estimates [3][6] - Net income was reported at -$494 million, a decline of 23.5% from -$400 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 $2.43 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 $3.66 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]