Warner Bros. Discovery (WBD) reported significant growth in its streaming segment, adding 6.4 million subscribers in the fourth quarter of 2024, bringing the total to 116.9 million. The revenue from streaming, primarily driven by its flagship service, Max, reached $2.65 billion, reflecting a 5% increase from the previous year’s fourth quarter. The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for this segment showed a marked improvement, reaching $409 million compared to an adjusted EBITDA loss of $55 million in the same quarter of 2023.
In a shareholder letter, WBD projected an adjusted EBITDA of $1.3 billion for its streaming business in 2025, which would be approximately double that of 2024. The company is aiming for 150 million global subscribers by the end of 2026, with plans to launch Max in the UK, Ireland, Germany, and Italy within that timeframe.
However, WBD's overall financial performance showed mixed results. The company reported a 2% decline in total revenue for the fourth quarter, amounting to $10.03 billion, down from $10.28 billion a year earlier. For the full year of 2024, revenue decreased by 5% to $39.32 billion. The company also recorded a net loss of $494 million in the fourth quarter, compared to a loss of $400 million in the same period the previous year.
Additionally, the revenue from WBD's TV networks segment fell to $4.77 billion, while the studios business experienced growth, with fourth-quarter revenue increasing by 15% to $3.66 billion. The company anticipates ongoing declines in cable subscriptions and challenges in the advertising market for U.S. linear television.