Business

Entertainment Giant Warner Bros. Sees Shares Plummet to Record Lows

Warner Bros. Discovery Inc. faced a significant setback as its shares plummeted to their lowest level since the stock’s inception in April 2022. The entertainment giant reported fourth-quarter revenue and profits that fell short of Wall Street expectations, primarily attributed to declining TV advertising sales and weaknesses in its studios business.

Revenue for the quarter stood at $10.3 billion, marking a 7% decline from the same period last year, falling short of analysts’ projections of $10.5 billion. Notably, advertising revenue in the TV networks division dropped by 12% to $1.9 billion, while revenue at its film and TV studios declined by 18% to $3.2 billion compared to the previous year.

Also Read: NYPD Launches Extensive Manhunt for 16 Suspects Following Stabbing of Teen Migrant in Times Square

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $2.5 billion, falling short of estimates for $2.8 billion. The company reported a loss of 16 cents per share, which was more significant than anticipated. Analysts also expressed concern over the absence of earnings guidance for the upcoming year.

As of 12:23 p.m. in New York, shares were down by 9.3% to $8.68, with a low of $8.25 earlier in the trading session.

Warner Bros., which owns CNN, TNT, and other networks, has been grappling with the shift in TV viewing habits from traditional channels to streaming services. The disruptions caused by strikes among Hollywood writers and actors further exacerbated the challenges faced by the company.

Also Read: Alastair Cook Surprises with Comparison of Joe Root’s Century in 4th Test to Rohit Sharma’s Bazball Mastery

David Zaslav, Chief Executive Officer of Warner Bros. Discovery Inc., acknowledged the difficulties during an earnings call, stating, “This business is not without its challenges… We are challenging our leaders to find innovative solutions.”

To diversify revenue streams, the company has been selling more programs to streaming platforms like Netflix Inc. Additionally, the acquisition of Turkish streaming service BluTV contributed 1.3 million subscribers to the company’s direct-to-consumer base, which totaled 97.7 million, surpassing analysts’ estimates of 96 million.

Despite the challenges, the company’s streaming business, including the HBO channel, remained profitable for the full year.

Naiteek Bhatt

Recent Posts

Ola Electric’s Share Hits All-Time Low Of Rs 74 Ahead Of Q2 Results

Analysts predict that the stock could drop closer to the Rs 70 mark. Ola Electric…

55 mins ago

US Election: Voting Begins With First Ballots Cast In New Hampshire

This election is one of the most divisive in US history. Harris and Trump have…

1 hour ago

Waqf Bill: Opposition MPs Meet LS Speaker, Lodge Protest Against JPC Chairman Jagdambika Pal

Opposition members alleged that Pal calls JPC meetings without consulting them and restricts their opportunity…

1 hour ago

Delhi HC Rejects Khalid Saifi’s Plea To End Attempted Murder Case In 2020 Riots

The Delhi Police opposed Saifi’s bail, citing evidence from WhatsApp messages exchanged among the accused.…

2 hours ago

Maha Kumbh 2025: Uttar Pradesh Enhances Security With Face Recognition Cameras

To protect millions of devotees at Maha Kumbh, the UP govt is implementing advanced security…

3 hours ago

SBI CME Soldierathon Set To Honour Indian Army’s Brave Soldiers On 244th Sappers Day At CME Pune

This landmark event, organized at the historic Military Institute, will honor the sacrifices of the…

3 hours ago