(Reuters) -Warner Bros Discovery Inc on Thursday posted a $2.1 billion loss in its fourth quarter, reflecting ongoing charges related to the restructuring of the merged media companies.
The company reported revenue of $11 billion, shy of analysts’ consensus estimate of nearly $11.36 billion.
Warner Bros Discovery reported a loss of 86 cents per share, versus expectations of a 21-cent-per-share loss. Before-tax earnings, or adjusted EBITDA, of $2.6 billion modestly exceeded analysts’ forecasts of $2.58 billion.
Shares of Warner Bros fell 2.7% after the report.
Warner Bros Discovery said the months-long merger-related restructuring, which resulted in thousands of layoffs and canceled film and television projects, is complete. The company cited signs of gathering momentum, including the popularity of the HBO drama “The Last of Us,” the fourth HBO series to average more than 15 million viewers, as well as the chart-topping success of its “Harry Potter” videogame “Hogwarts Legacy.” “With the major restructuring decisions behind us, this year we are focused on building and growing our business for the future,” Chief Executive David Zaslav said in a statement.
The studio also announced plans to revitalize its DC Comics franchise, in the mold of the Walt Disney Co’s Marvel Cinematic Universe. DC Studios co-Chairmen James Gunn and Peter Safran outlined plans for 10 film and television projects that tell a single story that unfolds over eight to 10 years. Warner Bros Discovery also said it has paid down $7 billion in debt since April. Like other media companies, Warner Bros Discovery has yet to turn a profit on its HBO Max and Discovery+ streaming services, though the company has reduced losses from them. Warner Bros Discovery reported an operating loss of $217 million in the quarter for its streaming unit, compared with pro-forma losses of $728 million a year ago. It booked $2.45 billion in revenue, exceeding Wall Street forecasts of $2.39 billion. Disney, by contrast, reported a operating loss of more than $1 billion for its streaming media unit in its December quarter, which includes the flagship Disney+ service. Paramount Global reported a loss of $575 million for its direct-to-consumer business. Warner Bros Discovery’s television segment also suffered from a weak ad market. It reported fourth-quarter advertising revenue of $2.23 billion, compared with expectations of $2.5 billion, according to Factset.
(Reporting by Dawn Chmielewski in Los Angeles; Additional reporting by Tiyashi Datta in Bangalore; Editing by Richard Chang)
