Warner Bros. Discovery reported a larger-than-expected quarterly loss on Thursday, May 9, due to declining advertising revenue at its cable TV division and struggles with the aftermath of the Hollywood strikes.
The loss per share was 40 cents, which is higher than the anticipated loss of 24 cents, and the revenue was $9.96 billion, which is lower than the projected revenue of $10.231 billion, based on the analysts polled by LSEG, according to CNBC.
Compared to the previous year, Warner reported a 7% decline in sales to $9.96 billion.
Warner Reports Loss of $966 Million in Q1
Warner's first-quarter loss was $966 million. The networks division, which encompasses CNN and the Discovery Channel, saw an 11% decline in advertising income during the first quarter, as reported by the New York Post.
Meanwhile, Warner's streaming division continued to perform well, with 2 million more subscribers worldwide, reaching 99.6 million.
The company's adjusted profit increased by 72%, an important indicator for investors pressuring businesses to reduce spending on big projects and increase profits.
The unit's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $86 million, compared to $50 million in the prior year.
The financial report follows Warner's announcement this week that it will offer customers a streaming bundle this summer that includes Disney+, Hulu, and Max. The exact price is still unknown.
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