(Reuters) – Warner Bros Discovery’s quarterly revenue rose 13% in the first set of results from the media giant forged by a $43 billion merger between Discovery Inc and AT&T Inc’s WarnerMedia assets.
The results did not include figures for WarnerMedia, home to the Harry Potter and Batman franchises, TV channels like CNN and streaming service HBO Max.
In the three months before the merger’s close, total paid streaming subscribers – including those from Discovery+ – rose by 2 million from the fourth quarter, the company said on Tuesday.
A rebound in ad spending, the Beijing Olympics in February and Discovery’s lifestyle TV networks such as HGTV and TLC helped draw in subscribers in a quarter that saw Netflix Inc post its first decline in more than a decade.
The bleak results from the streaming pioneer highlight the challenges facing the sector’s latest powerhouse, as Wall Street grows skeptical of streaming’s long-term prospects due to significant investments in content and an uncertain future.
Warner Bros Discovery’s total revenue rose 13% to $3.16 billion for the first quarter ended March 31.
Net income available to the company rose to $456 million, or 69 cents per share, from $140 million, or 21 cents per share, a year earlier.
(Reporting by Eva Mathews in Bengaluru and Helen Coster in New York; Editing by Devika Syamnath)
