Warner Bros. Discovery posts $966M loss, hurt by slumping ad sales and Hollywood strikes
NY Post
Warner Bros. Discovery posted a quarterly loss that was larger than expected as advertising sales slumped at its cable TV unit and the studio segment contended with the fallout of last year’s Hollywood strikes and poor demand for a “Suicide Squad” game.
Advertising trends in the US and certain international markets have been subdued as businesses responded to the possibility of higher-for-longer interest rates, a drag for Warner Bros Discovery and other media companies.
Warner posted a first-quarter loss of $966 million. Advertising revenue in its networks segment, which includes CNN and the Discovery Channel, fell 11% in the first quarter.
Rival Disney on Tuesday also reported a drop in its traditional TV business for the January-March period.
Warner Bros Discovery’s streaming unit remained a bright spot as global subscribers rose by 2 million to 99.6 million.
The business also reported a 72% jump in its adjusted profit – a metric closely watched by investors as they pushed companies to cut back on hefty investments and focus on profitability.
