.August 8, 2024 3:42 PM

Warner Bros. Discovery Inc (NASDAQ:WBD) reported a significant second-quarter loss of $4.07 per share on revenue of $9.71 billion, attributing the loss to a $9.1 billion charge in its networks unit due to the loss of NBA media rights. Shares of Warner Bros. Discovery dropped over 9% today, missing Street expectations of a $0.19 loss per share on revenue of $10.07 billion.

The widened loss was due to a $9.1 billion hit in its networks segment, impacted by a sluggish U.S. linear advertising market and uncertainties related to affiliate and sports rights renewals, including the NBA. Content revenue saw a 6% decline, with a notable 27% drop in EV TV revenue driven by lower licensing sales.

Global direct-to-consumer (DTC) subscribers reached 103.3 million by the end of Q2, with an average global DTC revenue per user of $8.00, reflecting a 4% sequential increase in constant currency. Despite challenges, Warner Bros. Discovery is focused on exploring new bundling opportunities to expand the reach of its streaming service, Max.

Warner Bros. Discovery remains committed to driving segment profitability in the latter half of the year and beyond through strategic initiatives and actions. The company aims to leverage new bundling opportunities to expand the reach of its streaming service, Max, and is optimistic about the future despite current challenges.