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Warner Bros. Discovery (WBD+5.81%) stock jumped about 10% after the entertainment conglomerate made upbeat predictions about its streaming business in an otherwise downbeat fourth-quarter earnings report.
The company said it has “a clear path” to 150 million streaming subscribers by the end of 2026 from 116.9 million at the end of 2024, an increase of 6.4 million from the third quarter. Direct-to-consumer Ebitda revenue may rise to about $1.3 billion in 2025 from almost $700 million in 2024.
Warner said it continues to invest in quality content, and is producing new seasons of “House Of The Dragon,” “Euphoria” and “True Detective,” as well as new series including “Harry Potter,” “A Knight Of The Seven Kingdoms,” “Lanterns” and “DTF St. Louis.”
Overall earnings didn’t fare as well in the final earnings period of 2024, with total revenue declining about 1% to $10 billion, excluding foreign exchange changes, as ad sales declined 11%. Warner reported a net loss of $494 million for the period and $11.3 billion for the year, partly due to restructuring costs.