Warner Bros. Discovery (WBD) saw a substantial surge in streaming subscribers, reaching 110.5 million globally by the end of the third quarter, representing an increase of 7.2 million from the previous quarter. This marks the highest quarterly growth since the launch of WBD's Max streaming platform.
The positive news spurred a jump in WBD stock, which climbed more than 10% in early afternoon trading on November 7. The significant growth in subscribers was primarily driven by international markets, while the U.S. saw a more modest increase of 200,000 subscribers, bringing the total to 52.6 million. This gradual domestic growth aligns with broader trends in the streaming industry, where international markets are becoming increasingly crucial for subscriber gains.
Despite strong streaming performance, WBD reported a 4% decline in overall revenue compared to the same period last year, coming in at $9.673 billion. However, the company achieved net income of $136 million, a positive shift from a $417 million loss in the third quarter of 2023.
Revenue from WBD's direct-to-consumer (DTC) streaming segment rose 9% year-over-year, adjusting for foreign currency impacts. Ad revenue within the segment saw a particularly notable increase of 51%. This growth reflects a rise in demand for the ad-supported version of Max, a trend that WBD is actively supporting as it expands its DTC offerings.
Results were mixed for WBD's traditional networks business. Revenue from distribution decreased by 8%, and advertising revenue fell by 13%.