Warner Bros. Discovery loses subscribers after Max launch, but shares rise on debt paydown

Warner Bros. Discovery reported second-quarter results Thursday that fell beneath Wall Street expectations crossed the committee and revealed subscriber totals that were down from the erstwhile quarter.

Global direct-to-consumer streaming subscribers astatine the extremity of the play were 95.8 million, beneath the 96.7 cardinal subscribers analysts were expecting according to StreetAccount, and a alteration of astir 2 cardinal from the extremity of the archetypal quarter.

The institution launched its combined Max streaming work during the 2nd quarter, merging HBO contented with unscripted hits from the Discovery networks into 1 platform.

Customers dropping their Discovery+ subscriptions for Max was apt to blasted for the driblet successful subscribers. Data supplier Antenna estimated that Discovery+ cancellations were up astir 68% compared to June 2022 owed to the switchover to Max.

Still, shares of Warner Bros. Discovery roseate astir 4% successful premarket trading arsenic the institution announced a tender disconnected aimed to wage down up to $2.7 cardinal successful debt.

It follows a tender connection from June, which besides drove the stock. Paying down its dense indebtedness load stemming from the 2022 merger of Warner Bros. and Discovery has been a absorption arsenic the institution looks to instrumentality to concern people presumption by the extremity of the year.

Here's what the institution reported for the 4th ended June 30, versus analysts' estimates, according to Refinitiv:

Warner Bros. Discovery reported a nett nonaccomplishment of $1.24 billion, oregon 51 cents per share, a crisp betterment from a nett nonaccomplishment of $3.42 billion, oregon $1.50 per share, a twelvemonth earlier.

Revenue of $10.36 cardinal was 5% higher twelvemonth implicit year.

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