Warner Bros. Discovery Inc (WBD) Q3 2025 Earnings Call Highlights: Record Box Office Revenue ...

This article first appeared on GuruFocus.

Box Office Revenue: Over $4 billion in 2025, leading domestically, internationally, and globally. EBITDA from Studios: Expected to exceed $2.4 billion this year, progressing towards a $3 billion goal. Streaming Subscribers: Added over 30 million new subscribers in three years, with a target of over 150 million by the end of next year. Streaming EBITDA: Expected to contribute more than $1.3 billion this year, compared to a $2.5 billion loss three years ago. Net Leverage Ratio: Reduced to 3.3 times EBITDA, including a $1 billion debt repayment in Q3.

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Release Date: November 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Warner Bros. Discovery Inc (NASDAQ:WBD) leads the 2025 box office globally, being the only studio to cross $4 billion in box office revenue this year. HBO Max has expanded to over 100 countries, adding more than 30 million new streaming subscribers in three years. The company has significantly reduced its debt, with a net leverage ratio now down to 3.3 times EBITDA. Warner Bros. Television received 14 Emmy awards, reinforcing its position as a leading supplier of television content. The company is on track to exceed $2.4 billion in EBITDA this year, with strong progress towards a $3 billion EBITDA goal.

Negative Points

The linear television business faces significant headwinds, impacting overall performance. There is pressure on ARPU in the U.S. due to a reset of affiliated party transactions and the rollout of ad-supported streaming options. The company is navigating a complex strategic review process, which includes evaluating potential acquisitions and separations. The transition from external to internal monetization of the content library has eliminated some company profits. The sports portfolio is undergoing restructuring, with a transition away from NBA rights, which may impact short-term revenue.

Q & A Highlights

Q: Can you provide more details on your sports portfolio and the standalone sports streaming app? A: Gunnar Wiedenfels, CFO, explained that Warner Bros. Discovery feels confident about their sports portfolio, especially with the transition from NBA rights to other sports rights, which will bring financial benefits. They are developing a standalone sports streaming app for the U.S. market, which will allow them to offer a compelling sports package independently or bundled with other products.

Story Continues

Q: How do you plan to scale HBO Max globally and compete with larger SVOD platforms? A: David Zaslav, CEO, highlighted that HBO Max has become a high-quality streaming service with a strong content slate, including original productions and local content. Jean-Briac Perrette, CEO of Global Streaming and Games, added that they have confidence in scaling due to successful content performance in markets like Australia and upcoming launches in major European markets. They aim to differentiate through quality content and strategic partnerships.

Q: What is the strategy behind the separation of streaming apps like CNN and T&T Sports? A: David Zaslav, CEO, explained that the CNN streaming app is designed to be a standalone product, offering global access to trusted news. Gunnar Wiedenfels, CFO, added that these apps are built on a shared platform to minimize costs and can be bundled with other services. The strategy is to offer modular content that can be activated together, providing flexibility and targeted offerings.

Q: Can you elaborate on the $3 billion EBITDA goal for the studio and the role of IP monetization? A: David Zaslav, CEO, stated that the goal is to reach $3 billion in EBITDA by leveraging known IPs and disciplined content production. They plan to utilize tentpoles and mini-tentpoles, such as Superman and Gremlins, and focus on original content. Gunnar Wiedenfels, CFO, mentioned that they have shifted from external to internal monetization of their library, which will support future profitability.

Q: How do you view the ARPU trends in streaming, and what are your plans for IP monetization? A: Jean-Briac Perrette, CEO of Global Streaming and Games, noted that ARPU trends will face short-term pressure due to market rate resets and the rollout of ad-supported tiers. However, they expect growth from price increases, better ad monetization, and password sharing enforcement. David Zaslav, CEO, emphasized the importance of a coordinated approach to franchise management, using examples like Harry Potter and DC Comics to maximize IP value.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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