Warner Bros Discovery (WBD) Q1 2013 Earnings Report

Warner Bros. Discovery posted a big quarterly loss even as its direct-to-consumer segment turned a profit for the first time ever.

CEO David Zaslav said the company also expects DTC, or streaming, to be profitable for 2023, a year earlier than it forecast.

First-quarter revenue was $10.7 billion, roughly in line with analyst estimates. The company reported a net loss of $1.1 billion and adjusted EBITDA of $2.6 billion.

This is what the company reported, vs. What are analysts’ estimates, according to Refinitiv:

• he won: $10.7 billion vs. $10.78 billion expected
• share loss: 44 cents vs. Expect profits of 1 cent

Like all major media companies, Warner Bros. Discovery is all about streaming video as millions of Americans cancel traditional pay TV each year. The company finished the quarter with 97.6 million subscribers, up 1.6 million from last quarter.

The direct-to-consumer segment earned $50 million for the quarter.

Warner Bros. Discovery is adding Discovery+ content to HBO Max and relaunching the service as Max in the US later this month. Zaslav previously promised Its streaming business will break even by 2024 and be profitable by 2025. Zaslav has drastically cut content spending, including canceling shows and movies from Max, to jumpstart efforts to make the business profitable.

Warner Bros. Discovery lost $930 million in free cash flow in the quarter, largely due to interest rates and sports media rights payments.

The company ended the fourth quarter with $49.5 billion in debt on its balance sheet and $2.6 billion in cash on hand. Warner Bros. Discovery is trying to boost free cash flow by cutting back on spending, including laying off thousands of employees last year, to reduce its heavy debt burden.

This is a developing story. Check back for updates.

Watch: Warner Bros. Discovery CEO David Zaslav speaks to CNBC after revealing the Max program