Warner Bros. Discovery Inc. (NASDAQ:WBD) missed revenue projections by about $2 billion in its first earnings report after adding HBO Max and various WarnerMedia holdings. It recorded a significant loss due to costs linked with the mix, which caused its inventory to decline.
In the second quarter, Warner Bros. Discovery (WBD) reported a loss of $3.42 billion, or $1.50 per share, on revenue of $9.84 billion, up from $3.06 billion a year earlier before Discovery acquired the prior WarnerMedia property in a complex spinout and merger agreement with AT&T Inc. (NYSE:T).
After reporting 89 cents per share on an adjusted basis a year earlier, the company did not offer adjusted earnings per share. However, it outlined approximately $4 billion in expenditures related to intangible amortization, restructuring, transaction and integration costs, and other items.
According to FactSet, analysts on expected projected earnings of 12 cents a share on an income of $11.83 billion. Following the release of the results, after ending with a 4.6 % increase at $17.48, shares fell by more than 11 % in after-hours trading.
Executives outlined some reasons why financial performance struggled in a conference call that lasted more than an hour and a half on Thursday afternoon. These reasons included challenging times for linear networks, canceled contracts for content sharing, and a significant slowdown in streaming progress.
Warner Bros. Discovery (WBD) Misses Revenue Expectations and Surpasses 92 Million Subscribers.
Following its second-quarter earnings, where it missed revenue projections and reported a sizable net loss, Warner Bros. Discovery’s stock (NASDAQ:WBD) is down 3.8 % in early postmarket activity. As stated, revenues were $9.83B. (not comparable to the unmerged Discovery of a year ago). Pro forma combined revenues were $10.82B, a 1 % decrease in constant currency over the prior year.
In the meantime, a $3.42 billion net loss included $983 million in transaction and integration expenses, over $2 billion in restructuring and other charges, and over $1 billion in intangible amortization. Additionally, pro forma, combined EBITDA decreased 31% over the previous year in constant currency.
A 1.7M increase from Q1’s 90.4M direct-to-consumer subscribers brought the total to 92.1M. After incorporating WarnerMedia and Discovery, the totals have been updated based on new definitions of DTC subscribers. (That new definition eliminates unactivated AT&T (NYSE:T) mobility subs and legacy Discovery noncore subs with 10M each from the Q1 figure.)
Featured Image: Megapixl @Merkuri2
