International Expansion Shows Promise, Warner Bros. Discovery (WBD.US) Exceeds User Growth Expectations in Q3

Warner Bros. Discovery (WBD.US) reported its Q3 earnings on Thursday. The company's Q3 revenue was US$9.62bn, down 4% YoY, missing the market's expectation of US$9.81bn; EPS was US$0.05, topping the market's expectation.

The direct-to-consumer segment, which includes streaming services, saw an 8% YoY increase to US$2.6bn. The largest business segment, the traditional networks segment, saw a 3% YoY increase to US$5.01bn.

Warner Bros. Discovery's user count in Q3 exceeded expectations, thanks to its international expansion strategy, and indicated its online business is recovering.

The company added 7.2mn streaming subscribers in Q3, the strongest quarterly growth since its platform's launch. Analysts had expected 6.1mn.

As viewers shift from traditional TV to streaming services, Warner Bros. Discovery aims to make Max available on as many devices and in front of as many consumers as possible. In September, Warner Bros. Discovery extended its distribution agreement with Charter Communications Inc., the largest cable TV service provider in the US, which allows Charter users to access Max and Discovery+ ad-supported subscription services.

After Latin America, Warner Bros. Discovery launched Max in Europe in May this year. The company plans to expand Max services to the Asian market, including Indonesia, Malaysia, the Philippines and other countries, later this month.

As of the time of writing, Warner Bros. Discovery rose over 5%.