Warner Bros. Discovery Q2 profit down 91% amid TV slump

Warner Bros. Discovery reported sharply lower profit and revenue for the second quarter, results that underscored the ongoing challenges facing its traditional television and film studio businesses even as its streaming division posted significant growth. The company announced on Thursday that net income plummeted 91% to $149 million, or $0.06 per share, compared to $1.58 billion in the same period last year. Overall revenue fell 11% to $8.72 billion, missing analyst expectations.

The steep decline in profit was attributed in part to $1.1 billion in pretax charges related to acquisition-related amortization and restructuring. The performance highlighted a stark divide within the company. While its direct-to-consumer streaming segment, led by HBO Max, saw revenue grow 10% to surpass $3 billion for the first time, with adjusted earnings soaring 75% to $512 million, other core divisions struggled.

The company's linear television networks, which include TNT, Discovery, and international channels, faced continued pressure. Revenue in that segment fell 17% to $4 billion, driven by a 22% decline in advertising revenue. Executives cited the absence of NBA programming, which moved to...