Warner Bros Discovery which last year renewed a multi-year agreement with Australia’s Foxtel Group, has reported a second quarter net loss of $9.99 billion (A$15.33 billion).

The company said that it booked a $9.1 billion (A$13.96 billion) noncash impairment from its networks segment.

It was created in 2022 when Discovery acquired WarnerMedia and the company has now concluded that cable channels like CNN and TNT are no longer worth what they were when the $42 billion (A$64.44) merger was finalised. More importantly, it points towards an exodus from cable networks towards steaming.

It said that its direct-to-consumer business had 103.3 million subscribers globally, an increase of 3.6 million subscribers from the first quarter. Its ad revenue from streaming doubled to $240 million (A$368.25 billion).

Revenue fell 6.2 per cent to $9.71 billion (A$14.9 billion) after seeing lower revenue across each of its business units.

Distribution and content revenue dropped 5 per cent to $4.88 billion (A$7.49 billion) and $2.11 billion (A$3.24 billion), respectively. Advertising revenue dropped 3.5 per cent to $2.43 billion (A$3.73 billion).

Shares of Warner Bros fell as much as 9.8 per cent to $6.96 (A$10.68) in extended trading after the announcement.

In June, Warner Bros Discovery announced a new network leadership team for Australia and New Zealand.

Under the terms of the renewed deal struck last year, Foxtel Group will remain the home of HBO, Max Originals, Warner Bros and Discovery programming in Australia. It also includes exclusive content rights across both Foxtel and Binge.

However, expectations are growing that Warner Bros Discovery will launch its own streaming platform in Australia, Max, next year.