Warner Bros. Discovery Sees Q1 Loss Despite Streaming Improvements
variety.comBrian Steinberg Senior TV Editor Warner Bros. Discovery posted a first-quarter loss, buffeted not only by the dynamics of streaming video that are eroding traditional media-industry economics, but also by charges related to the 2022 merger that created the company out of the former WarnerMedia and Discovery Inc.
The owner of HBO, TNT and the Discovery Channel said its loss of $1.069 billion included $1.81 billion of “acquisition-related intangible assets and $95 million of pre-tax restructuring expenses.” The company also indicated that the debt it took on to finance the merger was affecting its financials.
Warner Bros. Discovery had $836 million of “semi-annual interest payments largely attributable to merger-related debt that overwhelmed its cash flow.
The company reported a loss of $1.07 billion, compared with profit of $456 million in the year-earlier period. Executives took pride in the company’s ability to reverse losses in its streaming operations. “We’ve come through some major restructurings and have repositioned our businesses with greater precision and focus.
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