Investors continue to monitor NBA updates during the upheaval in linear TV

Are you ready for some insights into the upcoming first-quarter earnings report from Warner Bros. Discovery (WBD)? As the media giant navigates through challenges in the linear TV business and a tough advertising market, investors are keen to see how the company is managing its debt and potential impacts on NBA media rights negotiations with competitor NBCUniversal (CMCSA).

CEO David Zaslav recently shared his optimism about ongoing talks with the NBA at the Milken Institute conference, emphasizing the importance of this partnership. However, with weakness in linear advertising and affiliate fees, first-quarter earnings might be under pressure, possibly falling below analysts’ expectations.

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According to Bloomberg estimates, here’s what Wall Street is expecting for WBD’s first quarter:
– Revenue: $10.27 billion compared to $10.70 billion in Q1 2023
– Adjusted loss per share: -$0.24 versus -$0.44 in Q1 2023
– Subscriber net additions: 1.25 million versus 1.6 million in Q1 2023

Despite potential challenges in the upcoming quarter, WBD has exciting prospects with its sports streaming partnership with Disney (DIS) and Fox (FOXA), as well as the expansion of its Max streaming service into new markets. Additionally, the company’s collaboration with Disney to offer a bundle of Disney+, Hulu, and Max services in the US signals a strategic move to attract more subscribers.

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With a profitable direct-to-consumer streaming unit in 2023 and plans for further cost cuts and price hikes, WBD is positioning itself for growth. Although subscriber gains have been steady, international expansions and popular series like ‘House of the Dragon’ are expected to drive increased growth.

Stay tuned for potential updates on cost-cutting initiatives, streaming partnerships, and possible M&A activities as WBD looks to navigate through a challenging but promising year. Keep an eye on our updates at Extreme Investor Network for the latest financial insights and news to guide your investment decisions.

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