Warner Bros. Discovery leans on blockbusters to lift earnings
Strong performances from “Minecraft,” “Sinners,” “Final Destination: Bloodlines” and “F1” lifted Warner Bros. Discovery’s studio revenue 55% and set the stage for more gains with “Superman.”
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A run of big-budget blockbusters gave Warner Bros. Discovery a lift in the second quarter, with the studio’s film slate generating about $2 billion in global ticket sales. Releases from April through June — including “A Minecraft Movie,” “Sinners,” “Final Destination: Bloodlines” and “F1” — pushed revenue in the company’s studios segment up 55 percent to $3.8 billion. Theatrical revenue rose 38 percent, excluding currency effects, while adjusted earnings for the division jumped to $863 million from $210 million a year earlier.
The company expects the momentum to continue, projecting at least $2.4 billion in adjusted earnings for the full year, a step toward its $3 billion goal.
Third-quarter results will be buoyed by July’s “Superman,” which opened to $220 million worldwide, the “strongest ever debut for a solo Superman film,” the company said. By late July, “Superman” and Apple’s “F1” had together crossed $500 million in ticket sales, according to CNBC.
“We’ve had an extraordinary run. You know we were in last place,” David Zaslav, the chief executive, said Thursday. “And together we went from last to first. You know, Disney is a little bit ahead right now. … But we’re really making the turn.”
Warner Bros. has leaned heavily on its “Lord of the Rings” and “Harry Potter” franchises, with a new “Lord of the Rings” script from director Peter Jackson and more “Superman” projects in development.
Despite the rebound, the studio announced last month it would cut 10 percent of its staff. The company also plans to split into two units next year: Warner Bros., with the studios and HBO Max, and Discovery Global, with TV networks, Discovery+ and sports.
Overall revenue in the quarter rose 1 percent to $9.81 billion. Adjusted earnings climbed 9 percent to $1.95 billion.
