Warner Bros. Discovery Q4 Earnings Report

SOURCE www.cnbc.com
Warner Bros. Discovery missed analyst targets for profit and revenue in Q4 due to slumping advertising. The company's net loss was $400 million, with challenges in the pay TV ecosystem. The company reported a decline in studio revenue and free cash flow guidance for 2024. The flagship streaming service, Max, ended 2023 profitable with 97.7 million global subscribers.

Key Points

  • Warner Bros. Discovery missed analyst targets for profit and revenue in Q4.
  • The company's net loss was $400 million, with challenges in the pay TV ecosystem.
  • Studio revenue dropped 17% in the quarter.
  • Max's advertising tier will be expanded to 40 international markets by the end of 2024.

Pros

  • Warner Bros. Discovery ended 2023 with $6.16 billion in free cash flow, up 86% from the previous year.
  • Max, the company's flagship streaming service, ended 2023 profitable with 97.7 million global subscribers.

Cons

  • Warner Bros. Discovery reported a net loss of $400 million in Q4.
  • The company faces challenges in the pay TV ecosystem and declining studio revenue.