KEY TAKEAWAYS Warner Bros. Discovery shares plunged Thursday after the entertainment company recorded an almost $10 billion second-quarter loss, hit by a write-down in the value of its cable networks. The company posted a $9.1 billion non-cash goodwill impairment charge from its cable networks segment, as CNN and TNT, among others, continue to be hit by streaming giants like Netflix. The company posted a wider-than-forecast Q2 loss of $9.99 billion while its revenue of $9.71 billion also trailed analysts' e ...

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: Warner Bros. Discovery's poor second quarter came two years after it was formed by a merger between WarnerMedia and Discovery. Warner Bros. Discovery's share price plunged more than 10 percent after-hours on Wednesday after it reported a quarterly loss of almost $10 billion. Almost all of the loss was down to a $9.1 billion write ...

Financial Data and Key Metrics Changes - The company reported a significant non-cash impairment of goodwill amounting to $9 billion, reflecting the current market conditions and the need to align carrying values with future outlooks [19][23][28] - The net debt at the end of the quarter stood at $37.8 billion, with a net leverage ratio of around 4 times [21][22] - Free cash flow generated during the quarter was nearly $1 billion, representing a decrease of $750 million year-over-year due to increased content investment and lower operating profits [30] Business Line Data and Key Metrics Changes - The direct-to-consumer (D2C) segment saw a 6% growth in subscriber-related revenues, driven by strong advertising revenues, while content revenue declined by 70% due to timing of large licensing deals [25][26] - The D2C segment added 3.6 million subscribers in Q2, with nearly 4 million net ads internationally, indicating strong growth momentum [8][25] - Network ad revenue decreased by 9%, with domestic impressions declining by 13%, although sports-related pricing provided some offset [28] Market Data and Key Metrics Changes - The company experienced a notable sequential reduction in total advertising declines, decreasing from 7% in Q1 to 3% in Q2, indicating improved market conditions [12][28] - EMEA markets outperformed, contributing positively to overall revenue trends, while domestic pay-TV subscribers declined by 9% [28][29] Company Strategy and Development Direction - The company is focused on global expansion of its streaming service Max, with plans to launch in additional markets over the next 18 to 24 months [9][20] - There is a strong emphasis on bundling services to enhance consumer experience and reduce churn, with new bundles launched in Brazil and the U.S. [10][11] - The company aims to achieve over $1 billion in EBITDA by 2025, with a focus on profitable subscriber growth rather than maximizing near-term EBITDA [11][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the tough market conditions but expressed confidence in the long-term growth potential of the D2C business and the overall strategy [5][20] - The success of the Olympics in Europe was highlighted as a significant driver for subscriber growth and engagement [6][16] - Management remains optimistic about the upcoming content slate, which includes several highly anticipated series and films [11][14] Other Important Information - The company is actively pursuing partnerships with international distributors to enhance the distribution of Max, having completed over 150 deals to date [9][10] - The company is committed to maintaining a balanced capital structure and achieving a gross leverage target of 2.5 to 3 times [22] Q&A Session Summary Question: Future of Max in the streaming marketplace and potential for JVs or licensing deals - Management emphasized the importance of being a global leader in streaming and the ongoing discussions with international partners to enhance content offerings [33][35] Question: Details on the Goodwill write-down and NBA negotiations - The impairment was a result of multiple factors, including market cap discrepancies and uncertainties in sports rights negotiations, particularly with the NBA [36][37] Question: Strategic value of video games and their role in the portfolio - Management views video games as a significant growth area, particularly in the free-to-play segment, and is focused on leveraging existing IP for gaming [39][42] Question: Impact of losing NBA rights on basic networks EBITDA - Management acknowledged the profitability of NBA rights but refrained from discussing specific negotiations, indicating that strategic evaluations are ongoing [48][49] Question: Outlook for consolidated earnings growth - Management expressed confidence in the D2C and studio segments to offset declines in linear business, although specific timelines for growth were not provided [62]

Warner Bros. Discovery said Wednesday it wrote down the value of its TV assets due to the uncertainty of fees from cable and satellite distributors and sports rights renewals, sending its shares down nearly 10% in extended trading. The film and entertainment studio, which owns sports network TNT and streaming service Max, recorded a $9.1 billion non-cash goodwill charge in the second quarter. This charge, stemming from a reassessment of the assets' value since the merger of WarnerMedia and Discovery, contri ...

For the quarter ended June 2024, Warner Bros. Discovery (WBD) reported revenue of $9.71 billion, down 6.2% over the same period last year. EPS came in at -$4.07, compared to -$0.51 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $10.07 billion, representing a surprise of -3.50%. The company delivered an EPS surprise of -2161.11%, with the consensus EPS estimate being -$0.18. While investors closely watch year-over-year changes in headline numbers -- revenue and earn ...

Warner Bros. Discovery (WBD) came out with a quarterly loss of $4.07 per share versus the Zacks Consensus Estimate of a loss of $0.18. This compares to loss of $0.51 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -2,161.11%. A quarter ago, it was expected that this operator of cable TV channels such as TLC and Animal Planet would post a loss of $0.24 per share when it actually produced a loss of $0.40, delivering a surprise ...

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-34177 | --- | --- | --- | --- | |------------------------------------------------------------------------------------------------|--------- ...

In this article Warner Bros. Discovery's stock dropped on Wednesday after it reported a $9.1 billion write down on its TV networks and missed analyst estimates on revenue. Here is how Warner Bros. Discovery performed: Loss per share: $4.07. That may not compare with the 22 cent loss expected by analysts surveyed by LSEG Revenue: $9.07 billion vs. $10.071 billion expected The company's shares were down roughly 7% in aftermarket trading. This is breaking news. Please check back for updates. ...

Q2 2024 Earnings Press Release | August 7, 2024 Warner Bros. Discovery, Inc. Reports Second Quarter 2024 Earnings Results At Warner Bros. Discovery, our top priority is our global direct-to-consumer business and we are extremely pleased with the growing momentum we are seeing, as demonstrated by another strong quarter of growth with 3.6 million net adds, fueled by our ongoing international expansion and investment in high quality, diverse content. In light of industry headwinds, we have and will continue ta ...