Warner Bros Discovery Posts Wider-Than-Expected Loss In Q1, But Notes “Meaningful Turn” Toward Streaming Profitability
deadline.comWarner Bros Discovery matched Wall Street estimates for revenue in the first quarter, with $10.7 billion, but posted a wider-than-expected loss due to tough comparisons with the year-ago period.
Net losses reached 44 cents a share, worse than the 5-cent loss analysts had forecast and swung to the red from year-ago profit of 69 cents a share.
Streaming, though, proved a rare bright spot, posting $50 million in EBITDA after several quarters in the red. CEO David Zaslav pronounced it a “meaningful turn” in a positive direction and the company said it now expects the streaming operation to become profitable on a full-year basis in 2023, a year earlier than expected.
Streaming subscriptions, spanning HBO Max and Discovery+ rose by 1.5 million to reach 97.6 million, beating forecasts. The company had previously said direct-to-consumer streaming would break even this year and then hit the black by 2024.
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