WB. Discovery Reports Big Overall Loss Despite Streaming Profits

(CTN News) – Warner Bros., Inc. In spite of the fact that Discovery made a profit for the first time ever in the direct-to-consumer segment in the U.S., the company reported a big loss in its third quarter.

David Zaslav, CEO of the company, said in an earnings release Friday that the company expects the DTC, or streaming, business to become profitable in the U.S. in 2023, a year ahead of its expectations.

There was a revenue of $10.7 billion in the first quarter, which is roughly in line with analysts’ expectations. An adjusted EBITDA of $2.6 billion was reported for the company, which had a net loss of $1.1 billion.

It was reported by the company that, in comparison with analysts’ estimates, the company did the following:

• In terms of revenue, the company generated $10.7 billion compared with an expected $10.78 billion

• The loss per share for the quarter was 44 cents, compared to the expected profit of 1 cent

According to the company’s release, Discovery’s stock fell more than 4% in premarket trading after dropping nearly 4% on Thursday as well.

As with all major media companies, Warner Bros. Every year, millions of Americans are canceling traditional pay TV subscriptions as a result of the rise of streaming video.

It is estimated that the company ended the quarter with 97.6 million streaming subscribers, an increase of 1.6 million compared to last quarter.

The direct-to-consumer segment of the company turned a profit of $50 million in the first quarter of the year.

The Warner Brothers Studios. In the U.S., Discovery is rebranding the HBO Max service as Max later this month, adding Discovery+ content to the service and relaunching it as HBO Max.

According to the company’s previous promises, Zaslav’s streaming business is expected to break even in 2024 and become profitable in 2025. As part of the company’s efforts to make the company profitable, Zaslav has aggressively cut back on its content spending, including removing shows and movies from Max.

In an earnings conference call held to discuss the company’s results, Zaslav told reporters that the company has a great product and it will be profitable for the year. Zaslav pointed out that the company also has news and sports that are not yet listed on Max, but will be added soon.

It was a Warner Brothers release. As a result of interest and sports media rights payments to the company, Discovery lost $930 million in free cash flow in the quarter.

At the end of the fourth quarter, the company had $49.5 billion in debt on its balance sheet, and $2.6 billion in cash on hand.

Assume the following roles: As part of its efforts to reduce its debt to a more manageable level, Discovery is cutting back on spending, including layoffs of thousands of employees last year, in order to increase free cash flow.

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