Warner Bros. Discovery stock drops after $9.1 billion write-down on TV networks and missed revenue estimates

From CNBC: 2024-08-07 17:56:56

Warner Bros. Discovery stock drops after $9.1 billion write-down on TV networks and missed revenue estimates. Loss per share: 36 cents vs. expected 22 cents. Revenue: $9.7 billion vs. expected $10.07 billion. Shares fell approximately 9% in aftermarket trading.
Non-cash write-down attributed to overvaluation of TV networks segment due to shifting customer and advertiser preferences towards digital and streaming. Company focusing on growth in studios and streaming units. Warner Bros. Discovery paid down $1.8 billion in debt in Q2, totalling gross debt of $41.4 billion and $3.6 billion cash on hand.
Streaming business a bright spot with 3.6 million subscribers added in Q2, bringing total to 103.3 million. International expansion and increased ad spending driving profitability. Expectation for continued growth in streaming business. Company forming entertainment and sports streaming bundles with Disney, ESPN, Hulu, and Fox.
Direct-to-consumer streaming revenue decreased 5% due to content revenue drop, but advertising revenue up 99% driven by domestic subscription growth. Global revenue up 4% from ad tier. Total revenue down 6% to $9.7 billion. Adjusted EBITDA decreased 15% to $1.8 billion.



Read more at CNBC: Warner Bros. Discovery (WBD) earnings Q2 2024