Warner Bros. Discovery Reports $2.1 Billion Loss In Fiscal Q4 After Massive Asset Writedown
Image Source: The Drum
Warner Bros is continuing its financial restructuring. However, this is coming at the cost of short-term finances. As they continue to cancel projects, cut costs, and finalize their company dynamic post-merger, the $1.2 billion cost of said restructuring played a huge role in the loss of value in the company. The fourth quarter of 2022 saw a loss of $2.1 billion in assets for Warner Bros. Discovery.
Despite the losses, company CEO David Zaslav continues to look to the future. “We’re seeing strong momentum across the enterprise, we believe we have repositioned our businesses to take full advantage of the many opportunities ahead.” He stated that combining Warner media with Discover Inc is mostly complete and that the company is set to move forward.
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The company has seen a dip in income as well. Revenue fell 9%, and ad sales decreased 14%, even as HBO Max and Discovery + were heavily pushed with subscribers being added, and clear strategies from both platforms.
Image Source: Adweek
However, operating losses in these streaming platforms came to $217 million. Revenue from their TV networks, which include the Food Network, CNN, and Discovery fell by 6%, with most of these losses coming in the form of affiliate fees and advertising.
Company CFO Gunnar Wiedenfels indicated that the company plans to save $4 billion in costs by the end of 2024, and has stated so to investors.
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Source(s): Variety
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