Warner Bros. Discovery, Inc. Q4 FY2024 earnings call

Vision

• Combined Discovery’s media strength with Warner Bros’ IP and libraries to create a unique global media offering.

Direct-to-Consumer

• Ended 2024 with ~117 million subscribers, added ~6.5M in Q4 and ~20M in less than a year. Max is growing, aiming for 150M subscribers by end of 2026, and direct-to-consumer EBITDA expected to nearly double in 2025.

Studios

• Warner Bros’ television business is growing, excited about creative and financial outlook, with Superman release in July 2025.

Linear TV

• Struck multi-year renewal agreements with top pay TV providers in America, providing security and stability.

Restructuring

• Implemented new structure on Jan 1, working on finalizing financial aspects of reorganization to create visibility for studio, library, and streaming business, and potential to unlock shareholder value.

The direct-to-consumer business ended 2024 with about 117 million subscribers across more than 70 countries. It contributed almost $700 million in EBITDA, a $3 billion improvement in just two years, and is expected to nearly double in EBITDA in 2025. The studios, particularly Warner Bros’ television business, are showing growth and are excited about their creative and financial outlook, aiming for $3 billion or more in EBITDA. Despite headwinds in linear television, the company struck multi-year renewal agreements with five of the six largest pay TV providers in America, providing security and stability to the linear business.

Direct-to-Consumer

• Expect direct-to-consumer EBITDA to nearly double in 2025. Aim for at least 150 million subscribers by end of 2026.

Studios

• Aiming for $3 billion or more in EBITDA. Studios showing growth with better content library availability and restructured games unit.

Network

• Not providing consolidated guidance but discussing components like DTC EBITDA target, studio improvements, and network challenges with ad sales and affiliate trends.

• Linear TV headwinds and ad sales challenges. Geopolitical uncertainty in international markets. Sports rights costs impacting 2025 expenses with savings expected in 2026.

Q: Thoughts on skinny sports bundles and their impact on cord cutting or affiliate trends?

A: David Zaslav says it depends on consumer value proposition, better consumer experience is key, and aggregation behind global players likely as consumers demand easier access to content.