Disappointing Fourth-Quarter Results
Warner Bros. Discovery Inc.'s stock (WBD, -0.10%) tumbled 5% in early trading on Friday following the release of its fourth-quarter financial results. The company reported a wider-than-expected loss and lower revenue figures, citing weak ad revenue and the lingering effects of recent writers and actors' strikes.
Financial Overview
In the fourth quarter, Warner Bros. Discovery Inc. recorded a net loss of $400 million, equivalent to 16 cents per share. This loss was an improvement compared to the year-earlier period which saw a loss of $2.101 billion, or 86 cents per share. Total revenue for the quarter declined to $10.824 billion from $11.008 billion, missing the FactSet consensus of $10.337 billion in revenue.
Segment Performance
Studio revenue experienced an 18% drop when excluding foreign exchange impacts, while network revenue was down by 8%. The decline in ad revenue, which fell by 14%, was primarily attributed to decreasing viewership in domestic general entertainment and news networks. Additionally, the exit of the AT&T SportsNet business had a notable impact on ad revenue figures.
Market Response
Warner Bros. Discovery Inc.'s stock has fallen by 39% over the past 12 months, contrasting with a 26.8% gain by the S&P 500 during the same period.
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