Warner Bros Discovery revenue misses as media giant posts big loss

Warner Bros. Discovery connected Thursday posted a ample nonaccomplishment and recorded astir $11.1 cardinal successful 4th fourth revenue, missing analysts' estimates, arsenic the media manufacture contends with a brushed advertizing market. 

The company's TV networks conception – which includes cable-TV channels similar TNT, TBS and Discovery – decreased 6% to astir $5.5 billion, arsenic advertizing gross took a driblet successful particular.

Here's what the institution reported:

• Revenue: $11.01 cardinal vs. $11.36 cardinal expected, according to estimates from Refinitiv
• Loss per share: 86 cents per share

Warner Bros. Discovery shares fell aft hours.

The institution reported a nonaccomplishment of $2.1 cardinal for the period, oregon 86 cents per share. It was not instantly wide whether that fig was comparable to expert estimates from Refinitiv.

Warner Bros. Discovery executives began informing of a worsening advertizing marketplace past summer, and different media companies, including Paramount Global, person seen it measurement connected their earnings.

The institution has been contending with restructuring costs and impairment charges stemming from the 2022 merger of Warner Bros. and Discovery, portion trying to propulsion its streaming concern toward profitability. 

The institution ended the 4th fourth with $45.5 cardinal successful indebtedness connected its equilibrium sheet, and $3.9 cardinal successful currency connected hand. A large focus for Warner Bros. Discovery has been reducing its hefty indebtedness load and cutting costs.

"With the large restructuring decisions down us, this twelvemonth we are focused connected gathering and increasing our businesses for the future, and we're disconnected to a large start," CEO David Zaslav said successful the company's net merchandise Thursday. 

The company, which owns streaming services HBO Max and Discovery+, said its planetary direct-to-consumer streaming subscriber basal accrued by 1.1 cardinal to 96.1 cardinal by the extremity of the quarter. 

Revenue for the streaming conception was up 6%, the institution said Thursday, driven by an uptick successful subscriber maturation for its ad-supported tiers.

Losses for its streaming conception narrowed, the institution said. It posted a nonaccomplishment of $217 cardinal for the period, "a $511 cardinal year-over-year improvement," it added. 

Warner Bros. Discovery reported continued softness successful the advertizing market, which has been weighing connected its gross since past summer, erstwhile executives archetypal warned of a slowdown successful advertisement spending. Last week, Paramount Global reported a alteration successful quarterly revenue owed to little advertisement spending.

The company's web TV conception was peculiarly affected arsenic large sporting events including assemblage shot and the men's World Cup took spot connected different networks during the 4th quarter.

Meanwhile, the institution saw a 23% driblet successful gross for its studios segment, noting it had little TV licensing deals and less theatrical releases. The DC Comics movie "Black Adam" was released successful the 4th fourth past year, compared with aggregate releases including "Dune," "The Matrix Resurrections," "King Richard" and "The Many Saints of Newark" successful the aforesaid play during the erstwhile year.

This is simply a processing story. Check backmost for updates.