MUMBAI: Warner Bros. Discovery (WBD) delivered a tale of two halves in Q1 2025 — streaming surged, but studios and traditional networks struggled. The media giant reported total revenues of $9 billion, a 10 per cent dip from last year’s $10 billion.

Streaming revenues soared by nine per cent to $2.7 billion, with global subscribers hitting 122.3 million, up 5.3 million from Q4 2024. Advertising revenue in streaming shot up by 35 per cent, driven by a surge in ad-lite subscribers. Adjusted EBITDA in streaming rocketed to $339 million from just $86 million in the same period last year.

Studios revenue dropped 16 per cent to $2.3 billion, hurt by a 27 per cent plunge in box office revenues. Hits like Dune: Part Two and Godzilla x Kong: The New Empire couldn’t prevent a fall in theatrical revenue. Games revenue was a washout, plummeting by 48 per cent, as 2025 saw no major game releases.

Global streaming ARPU decreased nine per cent  ex-FX to $7.11, primarily attributable to growth in lower ARPU international markets and a five per cent decrease in domestic streaming ARPU to $11.15, primarily driven by a broader wholesale distribution of Max Basic with ads. Content revenue decreased seven per cent  ex-FX, as the launch of Max in new international markets, including Australia in the current year quarter, resulted in lower third-party licensing. HBO’s The White Lotus  had a record-setting season in the ratings and ranked among the five most streamed shows of March.

Global linear networks revenue fell seven per cent to $4.8 billion, weighed down by an eight per cent decline in distribution revenue and an 11 per cent fall in advertising. Domestic pay-TV subscribers continued to desert traditional networks, dragging the numbers down.

The company slashed debt by $2.2 billion but was left with $38 billion in gross debt and $4 billion in cash. Free cash flow took a 23 per cent hit, sliding to $302 million from $390 million in Q1 2024.