Warner Bros. (WBD.US) reported a net loss of $494 million in Q4, with the growth of its streaming business helping to offset the decline of its television networks.

Warner Bros. (WBD.US) released its fourth-quarter and full-year financial results, revealing a decline in its overall revenue. Specifically, fourth-quarter revenue decreased by 2% year-on-year to $10.03 billion from $10.28 billion. Full-year revenue in 2024 was $39.32 billion, down 5% from $41.32 billion in 2023.

On the profit side, Warner Bros. reported a net loss of $494 million in the fourth quarter of 2024, or a loss of 20 cents per share, compared to a net loss of $400 million, or 16 cents per share, in the fourth quarter of 2023. However, adjusted EBITDA was $2.7 billion, topping Wall Street's expectation of $2.66 billion.

Analysts attributed the company's fourth-quarter revenue miss to its traditional television business. However, its streaming services are winning new subscribers, with the segment's fourth-quarter revenue totaling $2.65 billion, up 5% from $2.53 billion in the same period last year, led by its flagship service Max.

The segment's adjusted EBITDA was $409 million, compared to a loss of $55 million in the same period last year. The company said that its global streaming users increased by 6.4 million in the fourth quarter of last year, bringing the total to 116.9 million.

Moreover, Warner Bros.' direct-to-consumer segment (including its Max streaming service) showed improvement, with adjusted EBITDA of $409 million, compared to analysts' expectations of $273 million.

The company also added 6.4 million Max users in the quarter, building on its strong momentum since launching in Latin America and Europe last year, with increased advertising on the platform.

Regarding business restructuring, Warner Bros. closed three of its video game studios and canceled the highly anticipated "Wonder Woman" game to improve the profitability of its interactive entertainment business.

Notably, the company said in December that it would reorganize its business into two segments: one focused on streaming and studios, and another focused on cable television networks. This move may help the company better navigate the environment where other traditional media giants are seeking mergers or partnerships to cut costs.

Regarding the studio business, fourth-quarter revenue totaled $3.66 billion, up 15% from $3.17 billion in the same period last year.

On the television network business front, fourth-quarter revenue was $4.77 billion, compared to $5.04 billion in the same period last year. The company had previously taken a $9.1 billion write-down for its network business in its 2024 second-quarter earnings report.