At Extreme Investor Network, we pride ourselves on providing unique insights and valuable information on the latest business news. Today, we’re diving into Warner Bros. Discovery’s first-quarter results and what it means for the company’s future.
Warner Bros. Discovery recently reported its first-quarter results, falling short of analyst expectations on both the top and bottom lines. Despite this, the company’s stock saw a 3% gain on Thursday. In terms of financials, Warner Bros. Discovery reported a loss per share of 40 cents vs. the expected 24 cents loss and revenue of $9.96 billion vs. the expected $10.231 billion.
The company’s streaming unit saw significant growth during the quarter, adding 2 million direct-to-consumer streaming subscribers, bringing its total to 99.6 million. This segment earned an adjusted $86 million, marking an improvement of $36 million from the prior year. Advertising revenue for streaming also saw a 70% increase, driven by higher engagement on Max in the U.S. and the launch of sports content.
In a strategic move, Warner Bros. Discovery announced a partnership with Disney to bundle its streaming services, including Max, Disney+, and Hulu, offering it to consumers at a discounted rate. This marks an innovative approach in the streaming industry as media giants team up to make streaming more profitable and combat subscriber churn.
On the sports front, Warner Bros. Discovery is in negotiations with the NBA for media rights, with hopes to reach an agreement that benefits both sides. The company has been expanding Max globally and will enter more European markets ahead of the Summer Olympics in Paris.
Despite challenges in its TV networks and studios segments, Warner Bros. Discovery remains focused on improving its film studio and reducing its debt load. The company repaid $1.1 billion in debt during the quarter and announced a $1.75 billion cash tender to further reduce its debt.
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