Warner Bros. Discovery (WBD) Q1 2025 Earnings Call May 08, 2025 08:30 AM ET Speaker0 Ladies and gentlemen, welcome to the Warner Bros. Discovery First Quarter twenty twenty five Earnings Conference Call. At this time, all participants' lines are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Additionally, please be advised that today's conference call is being recorded. I would now like to hand the conference over to Mr. Andrew Slavin, Executive Vice Pr ...

Core Insights - The summer box office has been revitalized by Disney and Marvel's "Thunderbolts," which earned an estimated $76 million domestically during its opening weekend, marking the third highest debut of 2025 [1] - The film's global earnings, including international ticket sales, reached approximately $162.1 million [1] - Analysts suggest that May is on track to become one of the best months on record for box office performance [1] Group 1 - Last year's summer box office faced challenges, with Universal's "The Fall Guy" only generating $28 million in its opening weekend, marking the first year since 2009 without a Marvel film to kick off the season [2] - Marvel films have struggled to match the success of "Avengers: Endgame" from 2019, with mixed performances in recent releases such as "The Marvels" and "Captain America: Brave New World," while "Deadpool & Wolverine" exceeded expectations [3][4] - "Thunderbolts" has received positive reviews, holding an 88% "Fresh" rating on Rotten Tomatoes from 257 reviews and a 94% audience rating, indicating strong word-of-mouth support [5] Group 2 - The opening weekend performance of "Thunderbolts" is seen as a promising start, with expectations for long-term success similar to other recent films like "A Minecraft Movie" and "Sinners," which have shown consistent audience interest [6]

Core Insights - The CEO of Cinemark, Sean Gamble, expressed optimism about a box office recovery that began in April, highlighting Amazon MGM's commitment to theatrical releases [1][3] - The ongoing debate regarding theatrical windows was addressed, with Gamble supporting a 45-day window for most films [2][5] - Despite a widening loss of $39 million in Q1, revenue increased by 7% to $541 million, indicating a potential recovery in the industry [2][3] Industry Performance - The industry has historically performed well during economic uncertainty, with the North American box office growing in six of the last eight recessions [7] - The current box office recovery is attributed to strong content and a positive outlook from studios, including plans from Amazon MGM to release 14 to 16 films by 2027 [3][4] - The debate on theatrical windows is ongoing, with a consensus that a 45-day window may be beneficial for most films to build cultural relevance [5][6] Market Dynamics - M&A activity in the exhibition sector may increase as surviving theaters look for buyers, with the box office showing signs of recovery [3] - The industry remains resilient in the face of economic challenges, as consumers continue to seek affordable out-of-home entertainment options [8] - The impact of external factors, such as trade tariffs and economic growth, is acknowledged, but the industry is optimistic about navigating these challenges [6]