Warner Bros. Discovery Sees Surge in Earnings Fueled by Box Office Hits

BENGALURU, India — Warner Bros. Discovery announced a surprising second-quarter profit on Thursday, attributing it to successful box office releases and the growth of its streaming platform.

The company’s film studio, which includes blockbuster titles like ‘A Minecraft Movie,’ ‘Sinners,’ ‘Final Destination: Bloodlines,’ and ‘F1,’ brought in $2 billion in global box office revenue between April and June. Total revenue for the studio unit increased by 55% to $3.8 billion, bolstered by a 38% rise in theatrical earnings, excluding currency fluctuations.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the studio segment reached $863 million, a significant jump from $210 million the previous year. Warner Bros. Discovery believes the strong performance will continue, projecting at least $2.4 billion in adjusted EBITDA for the year.

The film ‘Superman,’ released shortly after the second quarter, is expected to further enhance earnings. The movie grossed $220 million globally during its opening weekend, marking the best debut for a solo Superman film.

Since the merger of Warner Bros. and Discovery in 2022, CEO David Zaslav has emphasized the need to revitalize the studio segment, which suffered during the pandemic when theaters closed. To support this effort, the company appointed James Gunn and Peter Safran as co-heads of its DC Comics division and promoted Michael De Luca and Pam Abdy to lead Warner Bros. Motion Pictures.

Zaslav remarked on the company’s turnaround, stating, ‘We’ve had an extraordinary run. You know we were in last place… But we’re really making the turn.’ He also highlighted plans to leverage the company’s existing franchises, including ‘Lord of the Rings‘ and ‘Harry Potter.’

However, the studio continues to face challenges, including workforce reductions, as it restructures post-merger. Just last month, Warner Bros. Motion Picture Group announced a 10% cut to its workforce.

Despite these hurdles, Warner Bros. Discovery’s total revenue for the second quarter rose 1% to $9.81 billion, surpassing expectations of $9.76 billion. The adjusted EBITDA for the entire company increased by 9% to $1.95 billion.

With the continued push for global streaming expansion, the company gained 3.4 million new subscribers in the quarter and launched rebranded HBO Max in over 90 countries, enhancing its international reach.