US media giant Warner Bros. Discovery (WBD) has published its financial results for the second quarter (Q2) of 2025, headlined by quarterly revenue of $9.8 billion.
That figure, up a “modest” 1% on the equivalent quarter in 2024, contributed to net income of $1.6 billion during the three months up to June 30.
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This was largely down to a 22% increase in content revenue, itself powered by the global expansion of the HBO Max over-the-top service into new markets such as Australia over the quarter, which helped contribute to a year-on-year (YoY) subscriber growth of 3.4 million.
Globally, the streaming service hit 125.7 million subscribers, and WBD is expecting this to rise to 150 million by the end of 2026.
All this came while WBD has cut back on its sports rights costs over the quarter, with streaming segment operating expenses dropping 7% as a result.
In terms of linear TV, audiences dropped 23%, leading to a 13% plunge in advertising revenue, thanks in no small part to the fact WBD did not broadcast the NCAA March Madness Final Four tournament (which it aired a year prior), nor the National Hockey League Stanley Cup finals.
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By GlobalDataLinear TV revenue dropped 9% YoY, down to $4.8 billion, while earnings before interest, taxation, depreciation, and amortization (EBITDA) at the linear TV segment fell 24%.
In a letter to shareholders, WBD stated: “Looking ahead, we expect Global Linear Networks global advertising revenues in the third quarter to decline at a higher rate than the second quarter, given the lighter sports schedule, the comparison with last year’s summer Olympics, and the benefit to CNN in the prior year from U.S. election coverage…. We will not have the NBA in the U.S. beginning in the fourth quarter, which will impact both advertising revenues and cost of revenues.
“As noted, sports remain a key driver of live television viewing and an important component of our value proposition to distributors… During the quarter, we saw great success with our critically acclaimed Roland Garros tennis coverage, along with our involvement with the FIFA Club World Cup, and the inaugural season of our NASCAR In-Season Challenge. Bleacher Report saw strong growth in Q2, driven by NFL Draft content and NBA Playoffs highlights.
“We will continue to be strategic and disciplined in our pursuit of live sports rights that enhance the way we extend the reach of our content and drive engagement across all platforms – linear, streaming, and digital.”
WBD is currently undergoing a major split into two publicly traded companies.
The new Streaming and Studios company will consist of Warner Bros. Television, Warner Bros. Motion Picture Group, as well as DC Studios, HBO, and HBO Max. The Global Networks creation, meanwhile, will "include premier entertainment, sports, and news television brands around the world," including TNT Sports in the US, Discovery, as well as the Discovery+ streaming service.
The separation of these two entities is expected to be complete by mid-2026, subject to final conditions such as final approval from the WBD board. David Zaslav, president and chief executive of WBD, will take those same roles in Streaming & Studios, while Gunnar Wiedenfels, the company's chief financial officer, will serve as president and chief executive for Global Networks.
Global Networks will hold a stake of up to 20% in Streaming & Studios, which it plans "to monetize in a tax-efficient manner."
WBD has said the restructuring will enable each company to "be more agile" and will also equip each to be "faster and more aggressive."
An initial restructuring plan around separating the WBD business into linear TV and streaming units was unveiled last December.
