Warner Bros Discovery Inc (NASDAQ:WBD, ETR:J5A) reported better-than-expected results for the second quarter, driven by the international rollout of HBO Max and blockbuster releases, including A Minecraft Movie, Sinners, Final Destination: Bloodlines, and F1.
Revenue for the quarter was $9.81 billion, up 1% year-over-year and ahead of Wall Street estimates of $9.76 billion.
Adjusted EBITDA grew 9% to $2 billion, attributed to growth in its streaming and studio segments, offset partially by a decline in its linear networks segment.
Streaming revenues increased 8% to $2.8 billion from the year-ago quarter as the company ended the quarter with 125.7 million subscribers, up 3.4 million from Q1.
However, investors remain cautious on Warner Bros as its streaming gains are being offset by challenges in linear TV. The company’s large debt load and uncertainty around its restructuring into two separate companies also weighed on sentiment.
As such, shares were down 7.8% at about $12 post-earnings.