Advertising slowdown drags Warner Bros quarterly revenue
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Warner Bros. Discovery reported second-quarter revenue below market expectations on Thursday, as weaker advertising sales and disappointing box-office performance weighed on the media company’s financial results despite stronger growth in its streaming business.
The company posted revenue of $8.72 billion for the quarter, falling short of analysts’ expectations of $9.29 billion. Studio revenue dropped sharply after recent film releases, including Mortal Kombat II and Supergirl, failed to match the commercial success of last year’s blockbuster titles. The decline highlighted ongoing challenges in the theatrical business, where performance remains heavily dependent on a limited number of major releases.
Advertising revenue also declined significantly, reflecting the absence of NBA broadcasting rights and lower television audiences. Warner Bros. said the 2026 FIFA World Cup also affected viewership and advertising demand in several markets during June and July, further reducing revenue from its television networks.
Despite weaker revenue, the company reported a surprise quarterly profit after substantially reducing operating expenses, including lower sports-rights and content costs. Analysts said cost controls helped offset the impact of declining advertising and studio income.
Warner Bros.’ streaming division remained the strongest part of the business, with revenue increasing on the back of HBO Max’s international expansion and the popularity of original programming. The company continues to prioritise streaming as it competes with global rivals in the rapidly evolving entertainment industry.
The company also said its proposed $110 billion merger with Paramount received approval from Britain’s competition regulator. However, the transaction still faces legal challenges in the United States, where several states are seeking to block the deal on antitrust grounds. Company executives expressed confidence that the merger will ultimately be completed.
