% rise in annual streaming profits and projected a doubling of its streaming profitability by 2025, driven by global expansion and tighter cost controls. The company set an ambitious target of reaching 150 million streaming subscribers by the end of 2026, up from 116.9 million at the close of 2024. Shares of WBD surged more than 10% in early Thursday trading, as investors responded positively to the strong growth in streaming, despite an overall fourth-quarter net loss of $494 million, largely due to continued declines in traditional television and advertising revenue.
“In this generational media disruption, only the global streamers will survive and prosper, and Max is just that,” CEO David Zaslav said on the company’s earnings call Thursday.
The company’s streaming segment, anchored by Max and Discovery+, added 6.4 million subscribers in the fourth quarter, surpassing analyst expectations of 4.9 million, according to Visible Alpha. The unit’s revenue grew 5% to $2.65 billion, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to $409 million, a sharp turnaround from the $55 million loss reported in the same period last year.
WBD projected that streaming EBITDA would reach $1.3 billion in 2025, nearly doubling the $677 million posted in 2024. The company outlined a long-term goal of achieving profit margins above 20% for its streaming business.
