Warner Bros. Discovery (WBD) reported weaker-than-expected fourth-quarter results, but shares rose in premarket trading Thursday on an upbeat streaming outlook.
The entertainment giant reported a net loss per share of $0.20 on revenue of $10.03 billion. Analysts polled by Visible Alpha had expected a profit of $0.02 per share and revenue of $10.22 billion.
In its annual letter to shareholders, the company said its plans to continue expanding its Max streaming service to more countries and sees “a clear path to reach at least 150 million global subscribers by the end of 2026, with corresponding strong (Direct-to-Consumer) revenue and Adjusted EBITDA growth.” The company had 116.9 million DTC subscribers at the end of the fourth quarter.
The report comes amid a shift in Warner Bros. Discovery’s strategy. In December, it said it planned to split its operations into two segments, one for its television networks like CNN, TBS, and TNT, and another for its film studios and Max. The company said in the shareholder letter that it expects to complete the restructuring in the second quarter.
Warner Bros. Discovery shares, which entered the day up about 20% in the last 12 months, rose 5% about an hour before the opening bell.
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