Warner Bros. Discovery Shares Drop 7.27% as Mixed Earnings Send Volume to 151st Rank with $690M Turnover

On August 7, 2025, Warner Bros. Discovery (WBD) closed with a 7.27% decline, trading a volume of $0.69 billion, ranking 151st in market activity. The stock’s performance followed the release of its second-quarter earnings report, which highlighted mixed results across key segments. Total revenue for the quarter reached $9.8 billion, with modest growth driven by the film studios segment, while advertising revenues declined 10% excluding foreign exchange impacts.

The film studios segment reported a 55% revenue increase to $3.8 billion, fueled by box-office successes including "A Minecraft Movie" and "Final Destination: Bloodlines," which collectively generated over $2 billion globally. Adjusted EBITDA for the segment surged to $863 million, reflecting improved theatrical performance. However, advertising revenue was pressured by declining domestic linear audiences, underscoring ongoing challenges in traditional media formats.

Warner Bros. Discovery announced a strategic restructuring, including a planned split into two entities in 2026—streaming and studios under Warner Bros. and global TV networks under Discovery Global. The company also reduced gross debt by $2.7 billion during the quarter through a tender offer and debt repayments, ending the period with $4.9 billion in cash and 3.3x net leverage. Management emphasized momentum in the studios segment, projecting full-year adjusted EBITDA of at least $2.4 billion.

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