Warner Bros. Discovery dropped 700k streaming subscribers in Q3 2023

David Zaslav (Source: Warner Bros. Discovery)

Warner Bros. Discovery lost 700,000 streaming subscribers in the third quarter, taking its total down to 95.1 million, according to its latest financial report.

On the upside, ARPU per streaming sub increased by 6% to $7.82.

For Warner Bros. Discovery as a whole, Q3 total revenues were US$9.979bn. Revenues increased 1% exclusive of foreign currency impacts compared to the prior year quarter.

The company posted a net loss available of $417m, which included $1.758 bn of pre-tax amortization driven by acquisition-related intangibles and $269m of pre-tax restructuring expenses.

Q3 total Adjusted EBITDA was $2.969bn. Adjusted EBITDA increased 22% excluding FX impacts compared to the prior year quarter.

David Zaslav, president and CEO of Warner Bros. Discovery said, “I am very pleased with the strong financial results that our company delivered in Q3, underscored by 22% growth in Adjusted EBITDA and over $2 billion in free cash flow, putting us on track to meaningfully exceed $5 billion for the year and contributing to our nearly $12 billion in debt paydown to date.

“Among the highlights, our Direct-to-Consumer business had another profitable quarter with $111 million of Adjusted EBITDA and launched its new live-programming offerings with CNN Max and the Bleacher Report Add-On, which are showing early signs of contributing to increased engagement and lower churn on Max.

“We’ve made great strides in just 19 months and are excited to continue building on this strong momentum, as we focus on driving future growth and creating long-term value for our shareholders.”