What factors could improve WBD's EPS in 2025?

**Warner Bros. Discovery's (WBD) EPS is likely to improve in 2025 due to a combination of strategic initiatives and market trends.** Here are the key factors that could contribute to this improvement: 1. **Growth in Direct-to-Consumer (DTC) Segment**: The DTC segment, which includes streaming platforms like Max and Discovery+, has shown success in adding subscribers. Warner Bros. added 7.2 million new subscribers to Max in Q3 2024, bringing the total to 110 million. As this segment continues to grow, it is expected to contribute more significantly to the company's revenue and potentially improve EPS. 2. **Strategic Partnerships**: Warner Bros. has been expanding its global reach through partnerships. For instance, the partnership with Tele2 AB to integrate Max's reach globally could enhance content distribution and customer experience, potentially leading to increased revenue and profitability. 3. **Content Slate and Studio Performance**: The Studios segment is expected to see a turnaround due to an improved content slate. The company has had recent successes with films like Barbie, which had a significant box office impact. Strong film and television releases can lead to increased revenue and better EPS. 4. **Advertising and Network Segment Revitalization**: Despite challenges, the Networks segment is working on revitalizing its advertising revenue and managing costs effectively. The company's long-term distribution agreements and exclusive partnerships, such as with Sky Network Television, are expected to support revenue growth. 5. **Cost Controls and Margin Focus**: Warner Bros. has been focusing on cost controls and higher-margin segments. This shift in focus could lead to improved operational efficiency and better EPS as the company optimizes its operations. 6. **International Expansion and Market Penetration**: The company's efforts to expand into new markets and penetrate existing ones could lead to increased revenue and profitability as the global footprint grows. 7. **Technological Innovation and Integration**: Warner Bros. is likely to continue integrating technology and innovation into its services, which could lead to more efficient content delivery and better customer engagement, potentially improving EPS. Overall, these factors suggest that while there may be challenges, particularly in the short term, Warner Bros. Discovery is positioning itself for potential EPS growth in 2025 through strategic initiatives and market positioning.