Warner Bros Discovery Streaming Unit Posts 9% Revenue Rise Amid International HBO Max Rollout

Mintesinot Niggusie

Warner Bros Discovery’s streaming revenue rose 9 percent to 2.89 billion US dollars in the first quarter, surpassing analyst expectations of a 7.6 percent increase, according to data compiled by LSEG.

The increase was driven by subscriber growth and higher engagement following the international rollout of HBO Max, which the company said is now largely complete.

Chief executive David Zaslav told analysts on a conference call that HBO Max remains central to the company’s growth strategy, describing it as the “linchpin” of Warner Bros Discovery’s expansion plans and a key asset for the merged entity once the deal closes.

The company ended March with more than 140 million streaming subscribers, while Paramount+ recorded 79.6 million subscribers over the same period, based on current figures.

Combined, the planned Warner Bros Discovery–Paramount Skydance streaming business would exceed 220 million subscribers, a scale executives say would strengthen its competitive position against platforms such as Netflix and Disney.

Warner Bros Discovery reported a net loss of 2.92 billion US dollars for the quarter, which included a 2.8 billion US dollar termination fee linked to Netflix. The fee was paid by Paramount Skydance under the 110 billion US dollar merger agreement but recorded by Warner Bros Discovery as an obligation under the deal structure.

Total revenue for the quarter stood at 8.89 billion US dollars, broadly in line with analyst estimates of 8.9 billion US dollars. Advertising revenue fell 7 percent, reflecting the absence of National Basketball Association content and continued declines in US linear television audiences.

The company said the lack of NBA programming is expected to create a 16 percent constant-currency headwind to streaming advertising revenue in the second quarter. Analysts said the combined company could strengthen its sports offering.

“If the Paramount takeover goes as planned, PSKY-WBD will boast the strongest US sports offering outside of Disney, which could pull ad dollars back,” said Ross Benes, senior analyst at Emarketer.