Warner Bros Discoveries After a small number of box office hits in the second quarter, revenue was boosted by film studios.
From June to April, the releases of “Minecraft Movie”, “Sinners”, “Final Destination: Bloodlines” and “F1” were seen.
WBD saw a 38% increase in total studio segment revenue (including distribution of television content) over the quarter, up 55% to $3.8 billion, up 38%, and excluding the impact of foreign currency exchanges, due to high box office revenue.
Revenue adjusted prior to interest, tax, depreciation, amortization or EBITDA for the Studio Segment was $863 million over the period, up from $210 million in the same period last year.
In a letter to shareholders, WBD said it expects momentum to continue and that the studio segment is projected to generate at least $2.4 billion adjusted EBITDA for the full year. The company said the goal of notching adjusted EBITDAs in the segment, which ultimately exceeds $3 billion, is a “substantial step.”
“Superman” was released shortly after the end of the second quarter, but the success of the film could help unlock the third quarter of Warner Bros Discovery. “Superman” generated $220 million worldwide at the weekend’s opening. The company said it was “the strongest solo Superman film debut ever.”
In late July, Superman Apple’s The “F1” distributed by Warner Bros. had more than $500 million in ticket sales, CNBC reported.
Executives are currently in the process of rebuilding the Warner Bros film for several quarters.
In particular, CEO David Zaslav called for the need to revive the studio since the 2022 merger of Warner Bros. and Discovery. The segment was plagued by the closure of theatres during the pandemic, followed by the closure of actors and workers in 2023.
To support the unit, the company hired James Gunn and Peter Saffron as co-heads of DC Comics and TV units in 2022, moving to stabilize the ship in the superhero film division. That same year, Warner Bros. appointed Michael Delka and Pam Abi to Motion Picture, co-headed Warner Bros.
“We had an extraordinary run. You know we were in the last place,” Zaslav said Thursday. “And we went from last to last together. You know, Disney is a little ahead now…but we’re really making a turn.”
Since the merger, Zaslav has said WBD will lean towards franchise libraries such as “The Lord of the Rings” and “Harry Potter.” On Thursday, Zaslav said the company has a goal of two or three so-called tent pole releases per year.
Zaslav also said the company has already “gets a great script” for the installment of director Peter Jackson’s “Lord of the Rings.” He also notes the next iteration of “Superman” or “Superfamily” and the franchise is working on DC Studios.
Still, the division has faced staff cuts, just like other WBDs since the merger in 2022. Last month, Warner Bros. Motion Picture Group told employees it would cut 10% of its workforce, Deadline reported.
The company is also in the midst of splitting itself and essentially canceling the merger just three years ago. Next year, the current company will be split into two units, Warner Bros., consisting of a studio and streaming platform HBO MAX. and Discovery Global, consisting of TV networks, Discovery+ and sports business.
Overall, WBD’s total revenues rose 1% during the second quarter to $98.1 billion. Adjusted EBITDA rose 9% to $1.95 billion
