Anjali Sundaram | CNBC
Warner Bros. Discovery reported a 13% revenue jump and steady growth in streaming subscribers for its fiscal first quarter on Tuesday. The results do not include first-quarter performance from WarnerMedia, which Discovery acquired this month.
The company reported revenue of $ 3.16 billion and net income of $ 456 million. Shares rose as much as 2% in pre-market trading.
Here are the key figures:
- Profit per. shares: 69 øre compared to 21 øre in the first quarter of last year
- Income: $ 3.16 billion compared to $ 2.79 billion in last year’s first quarter
- Discovery streaming customers: 24 million, an increase of 2 million over the previous quarter
The newly combined Warner Bros. Discovery, a result of the WarnerMedia-Discovery merger that closed on April 8, debuts as a pure media company that investors can compare to Disney, Netflix and Paramount Global. CEO David Zaslav hopes to show Wall Street that the new device’s assets, including streaming services HBO Max and Discovery +, can compete globally for market share against the largest entertainment companies in the world.
“We put together the strategic framework and organization to drive our balanced approach to growing our businesses and maximizing the value of our storytelling, news and sports,” Zaslav said in a statement. “I could not be more excited about the huge opportunity that lies ahead.”
The combined WarnerMedia-Discovery company has a market value of more than $ 50 billion.
Zaslav took his first steps toward streamlining the company’s operations last week when he shut down CNN + just weeks after launch.
Zaslav plans to combine HBO Max and Discovery + into a bundled streaming service. The company has not announced whether the new combined product will be renamed or when that change will take place.
“We will clearly take swift and decisive action on certain topics, as you saw last week with CNN +,” Zaslav said at the company’s earnings call.
Prior to this effort, Discovery began running the Discovery + campaign during the first quarter. The company said sales, general and administrative expenses during the period decreased by 25%, primarily due to lower marketing-related expenses for Discovery + compared to last year’s launch period.
Warner Bros. Discovery said it added 2 million Discovery-related streaming subscribers in the quarter for a total of 24 million. This is in line with the 2 million added in the fourth quarter.
Last week, AT&T said HBO and HBO Max had 76.8 million subscribers by the end of the first quarter of 2022. The announcement marked the last time WarnerMedia would be part of AT & T’s earnings report.
SE: Why CNN + Shuts Down