Warner Bros Discovery Inc (NASDAQ:WBD) stock rose 0.16% (As on November 7, 11:22:30 AM UTC-4, Source: Google Finance) after the company misses the revenue expectations for the third quarter of FY25. Box office receipts from DC’s Superman, Weapons, and The Conjuring: Last Rites, however, fueled a 24% surge in the company’s studio revenue during the quarter.  The company added 2.3 million streaming subscribers in the third quarter, down from 3.4 million in Q2. On October 21, the company announced that it is open to a potential sale following unsolicited interest from multiple parties. WBD also plans to separate into two entities, a streaming and studios business and a global networks business, by mid-2026.

Moreover, Distribution revenues decreased 4% ex-FX, as dynamic underlying growth in global streaming subscribers was more than offset by continued domestic linear pay TV subscriber declines and the first full quarter impact of the HBO Max domestic distribution deal renewal with a former related party, previously disclosed in Q2. Advertising revenues decreased 17% ex-FX, as ad-lite streaming subscriber growth was more than offset by domestic linear audience declines. Content revenues decreased 3% ex-FX, primarily driven by the sublicensing of Olympic sports rights to broadcast networks throughout Europe in the prior year partially offset by the stronger performance of the theatrical releases in the current year quarter.

WBD in the third quarter of FY25 has reported the adjusted loss per share of 6 cents, beating the analysts’ estimates for the adjusted loss per share of 9 cents. The company had reported the adjusted revenue decline of 6 percent to $9.05 billion in the third quarter of FY25, missing the analysts’ estimates for revenue of $9.18 billion.

Additionally, net loss available to Warner Bros. Discovery, Inc. was $148.0 million, which includes $1.3 billion of pre-tax acquisition related amortization of intangibles, content fair value step-up, and restructuring expenses. Total Adjusted EBITDA was $2.5 billion, a 2% ex-FX increase compared to the prior year quarter, primarily due to growth in the Streaming and Studios segments, partially offset by a decline in the Global Linear Networks segment. Cash provided by operating activities was $1.0 billion. Free cash flow was $0.7 billion. Free cash flow was unfavorably impacted by approximately $500 million of separation-related items. The Company repaid $1.2 billion of debt during the quarter, including $1.0 billion of the bridge loan facility. The Company ended the quarter with $4.3 billion of cash on hand.