In their second quarter esrnings report David Zaslav, President and CEO of Warner Bros. Discovery ... [+] announced the media company would be taking a $9.1 billion write-down with the cable networks. Cable television have been losing subscribers, viewers and revenue. In an effort to retain the media rights, the WBD is suing the NBA, a partnership that began in 1988. (Photo by Kevin Dietsch/Getty Images) Getty Images During their second quarter earnings report on August 7, Warner Bros. Discovery announced a ...

Erik Khalitov Warner Bros. Discovery Investment Thesis The story at Warner Bros. Discovery, Inc. (NASDAQ:WBD) continues to become more challenging, causing the stock to plunge to all-time lows. The large media company has failed miserably to transition to a DTC video streaming platform, and a lack of content spending is likely holding back results now. My investment thesis remains more Neutral on the stock, with Warner Bros. entering value trap territory. finviz Thu AUG 08 2024 1:38 PM ET WBD DAILY -0.64 (8 ...

Warner Bros. Discovery Chief Executive Officer David Zaslav needs a win. Soon. Since merging Discovery with WarnerMedia in 2022 and immediately slashing billions in costs, Zaslav has struggled to convince shareholders that his company is a worthy investment. Warner Bros. Discovery shares have fallen about 70% since April 8, 2022, the day the merger closed. His tenure has been defined by implementing thousands of layoffs, cutting movies and TV series for tax efficiencies, killing off CNN+ a month after its l ...

Problems continue to pile up for the entertainment giant. Shares of Warner Bros. Discovery (WBD -7.78%) were plumbing new depths today after the entertainment giant posted another disappointing earnings report in its second quarter. As a result, the stock was down 8.9% at 12:34 p.m. ET. Warner Bros. is still broken Warner Bros. Discovery has been struggling since the business was formed through a merger in 2022. It is burdened with billions of debt and facing headwinds from the decline of linear media. Thos ...

Warner Bros. Discovery (WBD) reported second-quarter 2024 loss of $4.07 per share, significantly wider than the Zacks Consensus Estimate of a loss of 18 cents. The company had incurred a loss of 51 cents in the year-ago quarter. Revenues decreased 6.2% year over year to $9.71 billion, which missed the Zacks Consensus Estimate by 3.5%. Advertising revenues decreased 3.5% year over year to $2.43 billion. Distribution revenues dropped 5% year over year to $4.87 billion. Content revenues declined 13.8% year ove ...

Warner Bros Discovery (NASDAQ:WBD) stock is sliding lower on Thursday after the entertainment company posted its earnings report for the second quarter of 2024. Warner Bros Discovery starts off its earnings report with adjusted EPS of -18 cents. That's worse than Wall Street's estimate of -3 cents per share for the quarter. Adding to that is the company's revenue of $9.71 billion. That's another miss compared to analysts' revenue estimate of $10.07 billion. It's also a 5% decrease year-over-year for the ent ...

Shares of Warner Bros. Discovery fell sharply this morning, touching all time lows well under $7 after disappointing quarterly earnings after market close yesterday that included a massive write-down at its networks division. The stock fell to $6.73, a low. It's trading down more than 12% at $6.76 right now. The company missed most Wall Street forecasts in its numbers yesterday and posted an enormous loss after a $9.1 billion impairment charge to account for slipping advertising and uncertainty around sport ...

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]