Warner Bros. Discovery Inc. Fourth Quarter Performance
Warner Bros. Discovery Inc. shares hit a low after reporting lower-than-expected fourth-quarter revenue and profits due to declining TV advertising sales and weakness in its studios business. The company is facing challenges from the shift in TV viewing to streaming services and disruptions in the pay-TV ecosystem.
Key Points
- Challenges from the shift in TV viewing to streaming services
- Impact of ongoing disruptions in the pay-TV ecosystem
- Company exploring innovative solutions to address challenges
Pros
- Direct-to-consumer subscribers beat analysts' estimates
- Streaming business, including HBO channel, was profitable for the full year
Cons
- Fourth-quarter revenue fell 7% from the same period last year
- Adjust earnings before interest, taxes, depreciation, and amortization were below estimates