Warner Bros. Discovery (WBD) earned US$11 billion in Q4 revenue, representing a 9% decline compared to the same period in 2021.

The company’s latest financial results also reported US$33.8 billion in full-year revenue, down 3% year over year. Overall, WBD posted a net loss of US$2.1 billion in Q4, due in part to the costs associated with the merger between the two companies.  

“With the major restructuring decisions behind us, this year we are focused on building and growing our businesses for the future, and we’re off to a great start,” said CEO David Zaslav in Thursday’s financial call. 

Highlighting the success of the new Harry Potter game Hogwarts Legacy, which sold 12 million units to generate US$850 million worldwide in its first two weeks at market, Zaslav offered a key insight to WBD’s focus in 2023, saying games will be a core part of the company’s strategy going forward.

In his opening statement for the report, Zaslav said he hopes 2023 will be “a year of building.” Last year, the company slashed costs across the board. On the kids side of the business, several toons on HBO Max were axed; and there was a shift in focus away from live-action kids content; and lead kids and animation execs like Tom Ascheim and Allison Abbate departed.

Meanwhile, on the DTC front, HBO, HBO Max and Discovery+ collectively added 1.1 million subscribers in Q4, ending the year with a total of 96.1 million subscribers across all three services. Further details on the HBO Max and Discovery+ “super-streamer” will be unveiled on April 12. The combo service will roll out in the US and LatAm later this year, followed by APAC in 2024.

Alluding to popular IPs like the Wizarding World and the DC universe (pictured), Zaslav emphasized that the company’s trove of legacy properties⁠ will shape its long-term content plans.