Warner Bros. Discovery (WBD) said it was “preparing for its next chapter,” but once again made no reference to its games business in a letter to shareholders after games revenue slumped 30%.
In the letter, the company said it the firm remained focused on “scaling HBO Max globally, returning our Studios to industry leadership, and optimizing our Global Linear Networks.”
A deeper dive into the company’s financials, however, show games revenue dropped 30% (not accounting for foreign exchange impacting comparability), and games content expense decreased 43% ex-FX, “primarily driven by lower library revenues.”
Once again, WBD did not make explicit mention of its games business, but did confirm that its Studios segment – in which its game business is situated – “continues to make steady progress toward our target of at least $3 billion in Adjusted EBITDA supported by a diversified portfolio of first-run film and television, content library, video games, and experiences businesses.”
Revenue for Warner Bros. Discovery overall during Q1 2026 totaled $8.8 billion, a 1% decrease year-on-year.
In March, Warner Bros. Discovery said 2025 was a “significant” year for the company, but made little mention of its gaming sector beyond claims it is “rebuilding” its video game business in its most recent financial report to investors.
At the end of April, Warner Bros. Discovery shareholders “overwhelmingly” approved Paramount’s $111 billion acquisition.
