Given the commendable broadcast numbers for the first quarter of 2023, Warner Bros. Discovery expects the livestreaming business to remain profitable this year.
On Friday, May 5, Warner Bros. Discovery (NASDAQ: WBD) reported Earnings for the first quarter 2023 before the bell, which came in mixed. For example, the media and entertainment giant reported a large total loss despite turning a profit from its broadcast endeavors. Warner Bros. lost. Discovery generated $930 million in free cash flow quarterly even though its direct-to-consumer segment posted a profit of $50 million for the same period.
After its success in streaming, the New York-based company expects its streaming business to remain profitable in 2023. This forecast comes a year ahead of expectations.
For the first quarter of 2023, Warner Bros. Discovery revenue of $10.7 billion compared to consensus estimate of $10.78 billion. In addition, the multinational media and entertainment group also posted a loss per share of 44 cents versus the expected 1 percent. The loss of Warner Bros. Discovery net for the first quarter was $1.1 billion, with adjusted EBITDA of $2.6 billion.
Comments from the CEO of Warner Bros. Discovery announced its earnings for the first quarter of 2023
In the earnings release, Warner Bros. Discovery President and CEO David Zaslav commented on the quarterly outing, saying:
“It’s an important time for Warner Bros. discovery. We’ve been through some major restructuring and have repositioned our business with greater precision and focus. We see a number of positive proof points emerging, with DTC perhaps the most notable.”
According to the CEO, “a meaningful turnaround this quarter with $50 million in segment EBITDA and $1.6 million net additions” puts it on the right track.
Zaslav concluded by saying:
“Even in today’s challenging market, we are in a position to drive free cash flow and trim our balance sheet, and we remain confident in our ability and strategy to achieve our financial goals.”
Warner Bros. is set to hold Discovery has a conference call today at 8:00 AM ET to discuss its quarterly results.
Warner Bros. executives are proud of it. Discovery credits the entertainment giant’s ability to reverse losses in broadcast operations. Like many media powerhouses, the company has shifted its focus to streaming video after increasingly opting out of traditional pay TV. The media company finished the first quarter with 97.6 million live subscribers. This number represents a significant increase of 1.6 million subscribers from the previous quarter.
Despite the fiercely competitive broadcast space, Warner Bros. Discovery continues to thrive for the foreseeable future. The company is currently affiliated with the likes of Netflix (NASDAQ: NFLX), Disney (NYSE: DIS), and Apple (NASDAQ: AAPL) for streaming subscribers.
Warner Bros. Discover Streaming Shakeups
Warner Bros. Discovery is preparing Discovery+ content on HBO Max and relaunching streaming as Max in the US later this month. Zaslav cut content spending to spur efforts to make Warner Bros.’s streaming business more profitable. Discovery profitable. The CEO’s cost-cutting measures include pulling dozens of movies and TV series from HBO Max. According to a spokesperson for the streaming platform, most of the affected shows are factual or children and family content that did not resonate with large audiences.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify cryptocurrency stories down to the bare essentials so that anyone anywhere can understand without much background knowledge. When he’s not deep into cryptocurrency stories, Tolo enjoys music, loves to sing, and is a movie lover.