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The
company reported a $10 billion net loss for the second quarter
due to the write-down and missed Wall Street estimates for
quarterly results, overshadowing strong streaming subscriber
growth thanks to its cheaper ad-supported offerings and the
expansion of its streaming service Max to new markets.
The results also underlined the loss of a key sports broadcast
deal amid a broader hit from the shift to streaming.
The legacy media company, forged by the union of AT&T spinoffs
WarnerMedia and Discovery in April 2022, has lost more than $40
billion in its market valuation since then.
"WBD's market cap is a fraction of what it was pre merger, which
should make investors reconsider who really is enriched by giant
media M&A deals," said Ross Benes, television and streaming
analyst at eMarketer.
The stock, which has shed more than 32% of its value so far this
year, was the top loser on the S&P 500 index before the bell.
It was on track to open at a more than 15-year low and lose more
than $2 billion in market valuation, if premarket loses hold.
The company reported revenue of $9.71 billion in the second
quarter on Wednesday, compared with analysts' estimate of $10.07
billion, per LSEG data.
"There's no dressing this up. A disappointing set of results
with numerous challenges to overcome. There’s no easy fix and a
clear concise turnaround strategy is very much needed," said
Paolo Pescatore, analyst at PP Foresight.
(Reporting by Deborah Sophia and Harshita Mary Varghese in
Bengaluru; Editing by Saumyadeb Chakrabarty)
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