Warner Bros Discovery reports underwhelming revenue, says new streaming service coming earlier

by | Nov 3, 2022 | Business

Warner Bros. Discovery reported its third-quarter earnings on Thursday, missing analyst expectations, as it felt the effects of a tough advertising environment and costs associated with its post-merger restructuring.CEO David Zaslav also announced that the merged version of the company’s HBO Max and Discovery+ streaming services will be coming in the spring, earlier than the previously announced summer release date.Here’s what the company reported compared with analysts’ expectations, according to Refinitiv:Revenue: $9.82 billion vs. $10.36 billion expectedThe company reported a loss per share of 95 cents, citing macroeconomic headwinds, particularly in advertising.Shares fell more than 5% after hours Thursday, after declining 5.6% to $11.97 during the regular trading session.Warner Bros. Discovery is the result of a merger between AT&T’s WarnerMedia and Discovery, which was completed earlier this year.┬áSince the merger was completed, the company has been in the midst of significant cost-cutting measures, such as laying off staffers and pulling content from its streaming service HBO Max.”While we have lots more work to do, and there are some difficult decisions still to be made, we have total conviction in the opportunity ahead,” Zaslav said in the company release Thursday.Later, on an earnings conference call, he added: “In fact, we see this a a meaningful opportunity, one we seized wholeheartedly to look inside each of our businesses and see what’s working, what’s not working, is it structured properly, and does it have the right resources.”In the last year, Warner Bros. Discovery’s valuation has nearly been cut in half as Wall Street has lowered its expectations on global streaming subscriber growth. Streaming services have been competing for subscribers, with industry behemoth Netflix losing customers earlier …

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