Warner Bros. Discovery Reports $8.979 Billion Revenue, $453 Million Net Loss in Q1 2025

Warner Bros. Discovery, Inc. reported a total revenue of $8.979 billion for the first quarter of 2025, a decrease of 9.8% from $9.958 billion in the same period last year. The company's net loss for the quarter was $453 million, compared to a net loss of $966 million in the first quarter of 2024. This improvement in net loss was attributed to a significant reduction in costs, which fell to $9.016 billion from $10.225 billion year-over-year, primarily driven by lower content expenses and operational efficiencies.

The company experienced notable declines across its revenue streams. Distribution revenue decreased by 2% to $4.886 billion, largely due to a 9% drop in domestic linear subscribers. Advertising revenue also fell by 8% to $1.980 billion, impacted by a 27% decline in audience numbers for domestic linear networks. Content revenue saw a more substantial decline of 27% to $1.866 billion, primarily due to lower theatrical product revenue and a significant drop in games revenue. Despite these challenges, the company reported a 23% increase in streaming subscribers, reaching a total of 122.3 million.

In terms of strategic developments, Warner Bros. Discovery has implemented a new corporate structure aimed at enhancing strategic flexibility. This restructuring includes the renaming of its Direct-to-Consumer segment to "Streaming" and the Networks segment to "Global Linear Networks." The company continues to focus on its streaming business, which has shown growth despite the overall revenue decline. Additionally, the company entered a joint venture in January 2025, contributing a 70% interest in its music catalog for $601 million, which is expected to bolster its financial position.

Operationally, the company reported a decrease in total costs of revenues, which fell by 15% year-over-year, reflecting lower film costs and reduced payments to partners. The company’s cash and cash equivalents stood at $3.868 billion as of March 31, 2025, down from $5.312 billion at the end of 2024. The company also reduced its debt significantly, repaying $3.665 billion in senior notes during the quarter. Looking ahead, Warner Bros. Discovery anticipates continued challenges in the linear advertising market and subscriber retention but remains focused on leveraging its streaming growth and content portfolio to drive future performance.