Warner Bros. Discovery CEO expects friendlier environment for deal-making under Trump as studio posts surprise profit

Warner Bros. Discovery David Zaslav anticipates a friendlier situation for deal-making nether nan incoming Trump administration, opening nan doorway to manufacture consolidation, he said Thursday.

“That would supply a existent affirmative and accelerated effect connected this manufacture that’s needed,” Zaslav said connected an net telephone pinch investors.

Zaslav’s optimism astir nan caller management comes arsenic nan workplace and CNN genitor reported a astonishment quarterly profit connected Thursday arsenic costs controls and an Olympics-driven grounds jump successful streaming subscribers helped dress up for a deficiency of awesome container agency hits from its studio.

The company’s shares roseate 11% successful midday trading. The banal has mislaid astir a 4th of its worth truthful acold this year.

The company’s Max streaming level expanded into Europe weeks earlier nan Olympic Games successful Paris pinch exclusive authorities to watercourse nan showcase sporting event, boosting subscribers.

Max besides benefited from bundling nan level pinch Disney+ and Hulu, arsenic good arsenic nan beardown first play of “The Penguin” – a crime play bid released successful September and based connected a celebrated DC Comics villain.

Warner Bros. Discovery’s (WBD) streaming business, location to nan Max and Discovery+ services, added 7.2 cardinal direct-to-consumer subscribers successful nan 3rd quarter, beating estimates for 6.28 cardinal additions, according to information compiled by Visible Alpha.

Max delivered its strongest quarterly subscriber summation since nan platform’s launch, Zaslav said, calling it “a meaningful moment” that had capped 2 years of building nan work and reversing millions of dollars successful losses.

The streaming unit’s adjusted net earlier interest, taxes, depreciation and amortization much than doubled from a twelvemonth earlier to $289 million, aided by little contented expenses.

WBD besides made advancement successful its efforts to power costs, pinch expenses falling 5.5% successful nan 4th ended Sept. 30. That helped it study a astonishment profit of 5 cents per share. Analysts had expected a nonaccomplishment of 9 cents, according to information compiled by LSEG.

Revenue astatine nan TV networks division, which includes Discovery Channel, Animal Planet and Food Network, roseate 3% to $5.01 billion, driven by sub-licensing of Olympic sports authorities to location broadcast networks passim Europe.

Revenue astatine WBD’s workplace conception fell 17%, pulling full gross of $9.62 cardinal beneath estimates of $9.80 billion.

With releases specified arsenic “Beetlejuice Beetlejuice” successful nan July-September quarter, WBD’s workplace section has struggled to repetition past year’s occurrence of “Barbie,” nan highest grossing movie of 2023.

Trump spurs consolidation hopes

Like its rivals, WBD has been grappling pinch a diminution successful cablegram TV – a long-time profit motor – arsenic much subscribers displacement to streaming. The downturn has pressured companies to activity alternatives for nan business.

Last week, Comcast said it was considering spinning disconnected its cablegram networks that see CNBC into a abstracted company.

The manufacture needs to “meaningfully consolidate,” Zaslav said connected Thursday, adding that nan upcoming Trump management could “bring a gait of alteration and opportunity for consolidation.”

Strict antitrust policies nether nan Biden management have weighed connected deal-making across industries complete nan past fewer years.