03:24 PM EST, 01/13/2025 (MT Newswires) -- Warner Bros. Discovery's ( WBD ) Q4 revenue is likely to slightly decline year over year as the company faces continued headwinds from cord cutting and a weak linear ad market, UBS said in a note emailed Monday.

UBS said it was forecasting Q4 revenue of $10.1 billion, down 2% year over year, and earnings before interest, taxes, depreciation and amortization of around $2.7 billion, up 10% year over year.

The firm also said it expects Q4 free cash flow of $2.4 billion.

Ad revenue in the networks business is expected to decline 14% year over year due to pressure in the TV ad market, according to the note.

In the direct-to-customer segment, the company is likely to have added 7 million global subscribers thanks to new market launches and momentum internationally. "This should support 10% year-over-year growth in core DTC revenues for Q4, similar to 9% last quarter," UBS wrote.

In the studio segment, UBS said it expects revenue to increase by 8% year over year to $3.4 billion. Increased licensing with greater content availability and more consistent theatrical performance present sources of upside in the segment during 2025, UBS added.

UBS has a neutral rating on the stock with a price target of $9.

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