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

PM Modi’s Gifts: A Glimpse Of India’s Cultural Heritage In Global Diplomacy

These gifts to world leaders reflect the diverse traditions, arts, and crafts of India, emphasizing…

3 hours ago

Dr Rajeshwar Singh Calls For Bold Goals To Make India A Global Power By 2047

Dr Singh stressed the importance of reaching a GDP of $15 trillion by 2047 to…

3 hours ago

Gautam Adani Faces Indictment In US: Legal Expert Vijay Aggarwal Dismisses Immediate Repercussions

Criminal lawyer Vijay Aggarwal weighed in on the charges against Adani. He believes the indictment…

3 hours ago

Adani Group Stocks Recover As Sensex nd Nifty Post Gains

After a major sell-off earlier in the week, Adani Group stocks, led by Ambuja Cements…

5 hours ago

Sensex Soars 1,961 Points, Nifty Gains 557 In Broad-Based Market Rally

A sharp rally in financial stocks and encouraging US labor market data fueled the uptrend.…

5 hours ago

PM Modi Engages In 31 Bilateral Meetings During Three-Nation Tour

PM Narendra Modi held 31 bilateral meetings and discussions during his visit to Nigeria, Brazil,…

5 hours ago