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Studios are still facing delays in the release of new content,
especially given the lengthy post-production process, even
though the strikes by writers and actors ended in September and
November, respectively.
The company, forged by the union of WarnerMedia and Discovery,
reported overall fourth-quarter revenue of $10.28 billion,
missing analysts' average estimate of $10.35 billion, according
to LSEG data.
Excluding items, it lost 16 cents per share, larger than
expectations for a loss of 7 cents.
The company's shares were down 1% in choppy premarket trading.
Advertising revenue at its networks segment declined 12% to
$1.95 billion.
Customers' shift to streaming from linear TV has shackled the
company as it seeks to boost growth at its streaming services
while staving off declines at its cable business.
Warner Bros Discovery said it had 97.7 million global streaming
customers at the end of the fourth quarter, including 1.3
million subscribers from its acquisition of BluTV. That compared
with 95.1 million in the prior quarter.
The company is pinning its hopes on the release of the second
installment of sci-fi epic "Dune," featuring Timothee Chalamet
and Zendaya. The release was delayed from November due to the
Hollywood strikes.
Pink-themed movie phenomenon "Barbie" had helped the company
smash box office numbers last year with more than $1 billion in
ticket sales worldwide.
The results come when the U.S. entertainment industry is abuzz
with fresh consolidation moves. Reuters reported in January,
citing a source, that Skydance Media CEO David Ellison was
exploring an all-cash bid to acquire entertainment company
Paramount Global's parent, National Amusements.
That followed another Reuters report in December that Warner
Bros Discovery CEO David Zaslav and Paramount top boss Bob
Bakish had met to discuss a potential deal.
Costs were down nearly 19% at $10.47 billion as the company
spent less on content and marketing.
Free cash flow came in at $3.31 billion for the three months
ended December, topping estimates of $2.6 billion, according to
Visible Alpha.
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by
Sriraj Kalluvila)
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