WBD Q2 ad revenue falls 22% to $1.7B as NBA absence drives 20% of decline
A 22% drop in advertising revenue, to $1.7 billion, defined Warner Bros. Discovery's second quarter, and the company pointed to one cause above all: the absence of NBA programming, responsible for 20% of the decline overall. Domestic linear audiences fell 17% across WBD's networks, and global linear ad revenue slid 27% to $1.43 billion, though the NCAA March Madness Final Four and Championship broadcast provided a bright spot. Streaming advertising, still a small share of total ad revenue, grew 9% to $306 million, while streaming segment revenue overall rose 10% to $3.1 billion. Distribution revenue across cable and streaming ticked up 1% to $4.95 billion, linear TV distribution fell 9% to $2.3 billion, and streaming distribution rose 12% to $2.7 billion. Company-wide revenue sank 12% from $8.7 billion, net income dropped 91% to $149 million, content sales and studios revenue fell 39% to $2.3 billion on lower theatrical business, and adjusted EBITDA nearly doubled to $512 million. WBD shares rose 2% to $26.50 in midday trading.
Sports programming keeps determining WBD's ad fortunes: a single tentpole's absence erased a fifth of the ad revenue decline, while the NCAA tournament partly offset the loss when it aired. Budgets still tied to WBD's linear networks face continued audience erosion, down 17% in the quarter, even as the company's streaming ad business, though far smaller at $306 million, keeps growing faster than linear can offset. The pending Paramount Skydance deal adds uncertainty: a 12-state antitrust lawsuit has pushed a trial to March 2027, and Paramount has agreed not to close the $111 billion acquisition until a post-trial ruling or June 1, 2027, whichever comes first, meaning WBD's ownership structure, and any resulting shifts in ad sales strategy, stays unresolved for planners mapping spend well into next year.