# Warner Bros Discovery adds 2 million subscribers in first quarter
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-04-26
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Warner Bros Discovery Adds 2 Million Subscribers as Netflix
Meta Description: Find out how Warner Bros Discovery gained 2 million paid streaming subscribers in Q1, while Netflix faced a subscriber decline. Learn more about their revenue growth and future plans.
URL: https://financedigest.com/warner-bros-discovery-adds-2-million-subscribers-in-first-quarterhtml

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By Eva Mathews and Helen Coster

(Reuters) -Warner Bros Discovery said on Tuesday it added about 2 million paid streaming subscribers in the first quarter, at a time when industry pioneer Netflix lost subscribers for the first time in more than a decade.

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 TLC and Eurosport channel owner said quarterly revenue rose 13% to $3.16 billion, helped by a rebound in ad spending and the Beijing Winter Olympics.

The results did not include figures for WarnerMedia, home to the Harry Potter and Batman franchises, [pay TV channels such as CNN and streaming service](https://www.financedigest.com/best-paying-jobs-in-finance-consumer-services.html "Best Paying Jobs in Finance Consumer Services") HBO Max.

In a call with investors, Chief Financial Officer Gunnar Wiedenfels said 2022 will “undoubtedly be a messy [year.” He estimated that the WarnerMedia part of the company’s profit](https://www.financedigest.com/crop-merchant-louis-dreyfus-gets-profit-boost-in-volatile-year.html "Crop merchant Louis Dreyfus gets profit boost in volatile year") baseline for 2022 will be around $500 million lower than what he had anticipated, offset by a “couple of hundred million dollars” on the Discovery side of the company.

Wiedenfels reaffirmed the company’s goal of achieving $3 billion in [cost savings](https://www.financedigest.com/how-omnichannel-identity-servers-help-enterprises-enhance-customer-experience-unlock-cost-savings-and-accelerate-time-to-market.html "How omnichannel identity servers help enterprises enhance customer experience, unlock cost savings and accelerate time to market"), citing the recent decision to cancel CNN+ as an example. A lot of synergy potential is really going to come from cost [avoidance and elimination of planned](https://www.financedigest.com/5-retirement-planning-mistakes-to-avoid.html "5 Retirement planning mistakes to avoid") expenses for the streaming business,” he said.

In the three [months before the merger’s close](https://www.financedigest.com/monkeypox-emergency-could-last-months-with-window-closing-to-stop-spread-experts-say.html "Monkeypox emergency could last months, with window closing to stop spread, experts say"), the number of total paid streaming subscribers – including those from Discovery+ – rose to a total of 24 million.

Across the sector, [Wall Street](https://www.financedigest.com/weary-wall-street-cheers-improved-consumer-confidence.html "Weary Wall Street cheers improved consumer confidence") is starting to question streaming’s long-term prospects following a lightning surge during the pandemic. Those concerns were compounded after Netflix Inc’s disappointing [results and outlook](https://www.financedigest.com/astrazeneca-lifts-2022-earnings-outlook-as-cancer-drugs-boost-results.html "AstraZeneca lifts 2022 earnings outlook as cancer drugs boost results").

Last week, Warner Bros Discovery said it would shut down its CNN+ streaming service less than a [month after it got off to a slow](https://www.financedigest.com/spains-12-month-inflation-slows-down-again-in-december-to-5-8.html "Spain’s 12-month inflation slows down again in December to 5.8%") start, reportedly attracting just 10,000 viewers a day.

Net income available to the [company rose to $456 million](https://www.financedigest.com/swiss-insurance-company-helvetia-uses-squirro-to-deliver-better-search-results-to-its-five-million-customers.html "Swiss insurance company Helvetia uses Squirro to deliver better search results to its five million customers"), or 69 cents per share, from $140 million, or 21 cents per share, a year earlier.

[Shares of the company were trading 4.2% lower](https://www.financedigest.com/ford-posts-lower-profit-issues-downbeat-outlook-shares-drop.html "Ford posts lower profit, issues downbeat outlook; shares drop") before the bell on Tuesday.

(Reporting by Eva Mathews in Bengaluru and Helen Coster in New York; Editing by Devika Syamnath, Louise Heavens and Tomasz Janowski)


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