Warner Bros. Discovery Faces Revenue Declines and Streaming Challenges Despite Debt Progress
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Warner Bros. Discovery's Q4 earnings report showed concerning year-over-year declines in revenue and earnings for the studio and linear networks divisions.
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The Warner Bros. studio took a big hit from production delays caused by strikes, with a 30% drop in adjusted earnings and a 9% revenue decline.
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WBD continues to face challenges in the declining pay TV market and volatile advertising landscape. Management is focused on finding "innovative solutions."
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WBD narrowed the streaming loss at HBO Max and generated $6.2 billion in free cash flow in 2022 to pay down debt. But Max subscriber growth remains slow.
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CEO David Zaslav remains optimistic about WBD's content lineup driving growth over the next 2 years, but analysts and investors seem skeptical about the streaming and linear TV outlook.