Warner Bros. Discovery Q2 Profit Slumps on NBA Ads, Movie Schedule, Write-Downs
Get the Culture newsletter
Daily culture — film, music, books, the trends and ideas worth your attention. Free.
- Warner Bros. Discovery reported Q2 net income fell to $149 million from $1.58 billion year-earlier, with $1.1 billion in pre-tax acquisition-related amortization, content fair value step-up, and restructuring expenses contributing to the drop.
- Total revenue dropped 11% to $8.7 billion as the loss of NBA games after the 2025 season drove a 22% plunge in TV ad sales, while TV distribution revenue was hurt by a 10% decline in network subscribers.
- HBO Max expansion pushed streaming revenue past $3 billion for the first time, up 10% globally, with streaming distribution fees up 11% and ad revenue up 8%.
- Studio revenue tumbled 39% to $2.3 billion after tough comparisons with the year-earlier period that benefited from releases including 'A Minecraft Movie,' 'Sinners,' and 'Final Destination Bloodlines.'
- Paramount Skydance's pending acquisition of Warner Bros. Discovery remains stalled in federal court by a coalition of 12 attorneys general arguing antitrust violations in movie production and cable operations, with trial not expected until next year.
Why it matters: Warner Bros. Discovery's net income collapsed 91% to $149 million — with NBA losses, a 10% cable subscriber drop, and $1.1 billion in charges driving the decline — while 12 attorneys general argue the pending Paramount Skydance merger would violate antitrust law, and the trial isn't expected until next year.
