Warner Bros. Discovery said he expects the transmission profits to double this year and predict at least 150 million business subscribers by 2026, setting a bold goal as it benefits from the global participation of maximum cost controls.
Company shares increased more than 9% to $ 11.49 on Thursday as investors reduced a sudden loss for the fourth quarter due to the constant decline in its traditional television business and the poorest advertising sales.
The results are the first after the company decided in December to separate its TV businesses from transmission operations and in the studio, laying the groundwork for a possible sale or spinoff of its business on TV.
The division will allow the WBD to benefit from “wider market opportunities” as they are born, CEO David Zaslav told analysts.
“You know, in this disruption, we expect there will be.”
The mass has focused its transmission business, which includes Max and Discovery+.
WBD plans to bring Max service to Australia in late March, with concessions to Germany, Italy and the UK planned for next year.
The service rolled in more than 70 countries across Europe and Asia last year.
Global expansion and a content plate that presented the first season of “Dune: Prophecy” helped the company add 6.4 million transmission subscribers in the fourth quarter, compared to 4.9 million assessed by analysts, according to Visible Alpha.
‘Important View’
The general WBD subscribers now stand at nearly 117 million, much lower than the Netflix industry leader 302 million and 124.6 million for Disney+.
The company did not give an objective of the subscribers for this year, although its 2026 forecast was ahead of the estimates of 135.8 million subscribers.
“Our global expansion still has a significant track as Max ends in over 40% of the global addressable market, where it is not yet available,” WBD said in a letter to shareholders, adding that it was sure to hit the regulated margins of more than 20% in the transmission business over time.
WBD goals for Max “are realistic,” said Emarketer Ross Benes analyst, adding that the company will “reduce the password sharing, which will give them an incentive next year.”
He expects the unit to report the revenue regulated before interest, taxes, depreciation and depreciation (EBITDA) of about $ 1.3 billion in 2025, compared to $ 677 million last year.
In the fourth quarter, the unit posted an EBITDA regulated $ 409 million, exceeding expectations for $ 289.1 million, according to data compiled by LSEG. Unit revenue increased 5%.
The segment of TV networks, which includes CNN, Discovery Channel and Animal Planet, without a 5% decrease in revenue, with 17% declining advertising as traders stayed away from cable TV.
The studio business posted a 15% revenue jump after taking advantage of the highest content licensing tariffs as the impact of the 2023 Hollywood dual attacks by writers and actors.
In general, revenues came to $ 10.03 billion, under estimates of $ 10.19 billion. The company lost 20 cents per share, while analysts were expecting a 1 cent profit.
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