The earnings call highlights strong subscriber growth for Max, significant debt reduction, and promising direct-to-consumer revenue, while facing challenges in the Studios and Games divisions. The sentiment is balanced with notable achievements and some ongoing struggles.

Company Guidance

During the Warner Bros. Discovery Q3 2024 earnings call, the company provided guidance that showcased several key financial metrics and strategic initiatives. Warner Bros. Discovery reported that they have paid down over $16 billion in debt, with their strongest cash generation quarter ahead, while direct-to-consumer revenue reached $2.6 billion, up 9% year-over-year, and EBITDA increased by more than 175% to $290 million. The company highlighted that Max, their streaming service, has achieved over 110 million global subscribers, with 7.2 million added in Q3 alone. They anticipate surpassing $1 billion in EBITDA by 2025. The Networks business faced a 7% decline in distribution revenue, and the Studios business experienced challenges, notably with the Joker 2's disappointing performance and $300 million in games business write-downs. However, they predict improved profitability for their Studios segment by Q4. The company remains focused on leveraging its content and distribution platforms, underscoring the strategic importance of Max's global deployment and the sustained role of their linear TV business.

Debt Reduction and Strong Cash Generation

Warner Bros. Discovery has paid down over $16 billion in debt with the strongest cash generation quarter of the year still ahead.

Subscriber Growth for Max

Max has added 13 million subscribers, including 7.2 million in the third quarter alone, reaching over 110 million subscribers globally.

Direct-to-Consumer Revenue and Profitability Growth

Direct-to-consumer revenue is up 9% year-over-year, and EBITDA increased by more than 175% year-over-year.

Charter Renewal Agreement

Warner Bros. Discovery struck a renewal agreement with Charter Communications, showing innovative ways to serve customers and create stability.

Warner Bros. TV Profitable Performance

Warner Bros. TV is on track to have its most profitable year in scripted content in the last 5 years.

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Warner Bros (DE:J5A) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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DE:J5A Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Apr 26, 2022	2022 (Q1)	0.46 / 0.67	0.514	30.19% (+0.16)	―	―
Aug 04, 2022	2022 (Q2)	0.08 / -1.45	0.863	-268.54% (-2.32)	―	―
Nov 03, 2022	2022 (Q3)	-0.25 / -0.74	0.407	-281.43% (-1.15)
Feb 23, 2023	2022 (Q4)	-0.28 / -0.56	0.708	-179.45% (-1.27)
May 05, 2023	2023 (Q1)	-0.13 / 0.12	0.669	-82.61% (-0.55)
Aug 03, 2023	2023 (Q2)	-0.33 / -0.49	-1.454	66.00% (+0.96)
Nov 08, 2023	2023 (Q3)	-0.11 / -0.16	-0.739	77.69% (+0.57)
Feb 23, 2024	2023 (Q4)	-0.10 / -0.16	-0.562	72.41% (+0.41)
May 09, 2024	2024 (Q1)	-0.19 / -0.39	0.116	-433.33% (-0.50)	―
Aug 07, 2024	2024 (Q2)	-0.26 / -3.95	-0.494	-698.04% (-3.45)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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DE:J5A Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 07, 2024	€7.85	€8.59	+9.41%
Aug 07, 2024	€7.14	€6.25	-12.44%
May 09, 2024	€7.25	€7.24	-0.12%
Feb 23, 2024	€8.86	€7.89	-10.93%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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