In its latest fiscal quarter, Warner Bros. Discovery (WBD) posted a net loss of almost US$10 billion—driven by the challenges of staying afloat in the traditional TV market. 

The conglom’s Q2 financial report was published yesterday, revealing that its TV networks business had taken a whopping US$9.1-billion impairment charge—and shares were trading down by 12.7% this morning (US$6.73 per share) in the wake of this news.

Overall, WBD generated US$9.7 billion in total revenue for the quarter, representing a 6% decrease from the same period last year.

Streaming-wise, the company added 3.6 million subscribers in Q2 to hit a combined tally of 103.3 million worldwide. Max completed an initial phase of its European rollout in June and is now operating in 25 countries, including France, Poland and the Nordics. In terms of kids releases, there was the US premiere of tween series Home Sweet Rome! (Red Monk and First Generation Films) in May, and teen/YA feature film Turtles All the Way Down (WB Pictures, Temple Hill and New Line Cinema) also rolled out that month. 

“In light of industry headwinds, we have [taken] and will continue taking bold steps, like reimagining our existing linear partnerships and pursuing new bundling opportunities,” said president/CEO David Zaslav. WBD notably teamed up with streaming rival Disney this summer on a Disney+/Hulu/Max bundle that launched last month.

The goal is to get Max “on the devices of more consumers faster, and at a fraction of the acquisition cost,” Zaslav explained. “[We] are seeing clear evidence that these and other actions we are taking will help drive segment profitability in the second half of the year, and into 2025 and beyond.”

The studios segment—which encompasses games, TV and theatrical—earned US$2.45 billion in revenue this quarter, which marks a 4% year-over-year decline.

Down by 41% compared to Q2 2023, the biggest revenue dip was posted by the games division. This was due to Hogwarts Legacy providing a significant sales boost last year. Theatrical revenue increased by 19%, mostly based on the performance of adult-oriented releases—but PG-13 monster pic Godzilla x Kong: The New Empire (pictured) hit theaters in March and had racked up an impressive US$568 million by the close of Q2.