Warner Bros. Discovery Exceeds Expectations in Latest Quarter

by Warren Seah

Warner Bros. Discovery, a leading media company, has surpassed expectations in terms of free cash flow and per-user revenue in streaming during its latest quarter. This positive performance has resulted in a 4.5% increase in the company’s shares during premarket trading on Wednesday.

Strong Financial Performance

During the second quarter, Warner Bros. Discovery reported a net loss of $1.24 billion, or 51 cents per share. This is an improvement compared to the net loss of $3.42 billion, or $1.50 per share, in the same period last year. The net-loss figure for the latest quarter includes $1.66 billion in pre-tax amortization charges related to acquisition-driven intangible assets and $146 million in pre-tax restructuring charges. The FactSet consensus anticipated a loss of 35 cents per share.

Total revenue for the quarter amounted to $10.36 billion, up from $9.83 billion in the previous year. Although analysts had projected revenue of $10.44 billion, the company’s performance remained robust.

Strong Free Cash Flow and Adjusted Earnings

The company’s adjusted earnings before interest, taxes, depreciation, and amortization for its direct-to-consumer business resulted in a $3 million loss. On the other hand, Warner Bros. Discovery’s overall free cash flow stood at $1.72 billion, demonstrating significant growth compared to $789 million in the previous year. Analysts had anticipated free cash flow of $886 million.

In conclusion, Warner Bros. Discovery has achieved impressive financial results in its latest quarter. The company’s focus on streaming and its ability to generate higher per-user revenue have contributed to its strong performance.

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