Warner Bros Discovery posts smaller quarterly loss on cost cuts
WARNER Bros Discovery posted a smaller loss for the second quarter on Thursday (Aug 3) as the media conglomerate benefited from cost cuts, sending its shares nearly 4 per cent higher in pre-market trading.
Media companies have been looking to strike the right balance between spending on content and boosting profitability.
Under chief executive officer David Zaslav, Warner Bros Discovery has been seeking to run its direct-to-consumer business, which includes the “Max” streaming service, more efficiently.
Net loss for the quarter came in at US$1.2 billion, compared with a loss of US$3.4 billion a year earlier. The company reported a more than 16 per cent drop in total costs and expenses in the quarter.
“Our direct-to-consumer business... in the wake of the successful launch of Max in the US, is tracking well ahead of our financial projections,” said Zaslav.
Warner Bros Discovery’s new streaming service launched during the quarter in the US, combining HBO Max’s scripted entertainment with Discovery’s reality shows.
The company, forged by the union of WarnerMedia and Discovery, reported second-quarter revenue of US$10.36 billion, missing analysts’ average estimate of $10.44 billion, according to Refinitiv data.
Free cash flow came in at $1.7 billion in the three months ended June, beating estimates of US$987 million, according to Visible Alpha. REUTERS
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