Warner Bros. has released its financials for Q4 and FY2024, reporting that revenue for its games segment dropped 29% year-on-year for the three months ended December 31, 2024.
Detailed figures are not provided for games revenue (which falls under the Studios segment).
However, the firm said that while games revenue decreased in Q4, it experienced better performance from titles such as Hogwarts Legacy and Mortal Kombat 1 compared to the same period last year.
Overall, revenue for the firm’s Studio segment increased by 16% year-on-year to $3.65 billion during the fourth quarter. However, full year revenue declined by 5% to $11.60 billion.
As for Warner Bros. as a whole, revenue for Q4 saw a 1% drop to $10 billion compared to the same period in 2023, while its full year revenue experienced a 4% decline year-on-year to $39.3 billion.
In a letter to shareholders, Warner Bros. addressed its recent restructure which saw the closure of three studios – Monolith Productions, Player First Games, and Warner Bros San Diego. The decision to shut down Monolith resulted in the cancellation of its upcoming Wonder Woman project.
“2024 was a disappointing year for our games business and we have recently announced a restructuring plan to refocus our resources and capital on proven IP and games from proven, world class studios,” it wrote.
“We are focusing our games business around four tentpole franchises that have each generated over $1 billion in consumer sales in past years: Harry Potter, Game of Thrones, Mortal Kombat, and DC – particularly top tier characters like Batman.”
It went on to reiterate the success of Hogwarts Legacy as a driving factor for its “re-focused strategy.”
“That gives us the confidence that with our re-focused strategy we can get back to producing high-quality games built for long term consumer engagement, which we expect to propel our games division back to profit in 2025 and emerge as a more significant contributor to growth in the years ahead.”