“Superman” offset by cable TV as Warner Bros. Discovery posts a revenue miss amid potential sale
Warner Bros. Discovery reported its third-quarter results on Thursday.
A $615 million global box office run for “Superman” was overpowered by the entertainment industry’s kryptonite: cable television.
Warner Bros. Discovery reported its third-quarter results on Thursday, and 8% revenue growth in its streaming and studios division was eclipsed by a 22% plunge in sales for its global linear networks division, which includes its cable TV business.
The HBO and CNN parent posted a net loss of $148 million, compared to a $135 million profit in Q3 last year. WBD shares were up modestly in early trading on Thursday.
The entertainment giant also:
Booked $9.05 billion in total revenue, down 6% from the same period last year and below the $9.18 billion expected by analysts polled by FactSet.
Grew its streaming ad business by 14%, on a constant currency basis, to $235 million.
Ended the quarter with 128 million streaming subscribers, up 2.3 million from Q2 but slightly shy of estimates.
Posted adjusted earnings of $0.04 per share, narrowly beating Wall Street’s expectations of $0.03 per share.
The company said it expects the absence of NBA games to ding ad revenues for both its streaming and cable businesses in the fourth quarter.
These results come amid a potential sale of all or part of the company to a major entertainment rival. Last month, WBD said it had received interest from multiple parties. Reports said that the company rejected three offers from Paramount Skydance and that Amazon and Netflix may be among the other companies circling.
