AP

Warner Bros. Discovery Q2 results miss Wall Street’s view

Aug 4, 2022, 10:22 PM | Updated: Aug 5, 2022, 11:06 am

Signage is seen at CNN center, Thursday, April 21, 2022, in Atlanta. Warner Bros. Discovery, which ...

Signage is seen at CNN center, Thursday, April 21, 2022, in Atlanta. Warner Bros. Discovery, which went public in April, missed Wall Street’s expectations in the second quarter, Friday, Aug. 5, as the media giant looks to work through the growing pains of its merger. (AP Photo/Mike Stewart, File)

(AP Photo/Mike Stewart, File)

Warner Bros. Discovery, which went public in April, missed Wall Street’s expectations in the second quarter as the media giant looks to work through the growing pains of its merger.

Warner Bros. Discovery, which is the $43 billion combination of Discovery and the AT&T spinoff WarnerMedia, trimmed some debt during the quarter and is trying to rein in costs. The company said that Warner Bros. started some projects before the merger that increased costs after the combination of the businesses was complete.

Earlier this week Warner Bros. sent shock waves through Hollywood when it announced that it axed the “Batgirl” film planned for HBO Max, opting to shelve the $90 million film. Warner Bros. also shelved “Scoob!: Holiday Haunt,” an almost-completed sequel to 2020´s “Scoob!”

Under new Warner Bros. Discovery CEO David Zaslav, Warner Bros. is shifting its strategy on film releases and trimming costs.

The company is planning to merge its HBO Max and Discovery+ streaming services, with a U.S. rollout anticipated for next year. Zaslav, who noted during a call with analysts that “our streaming strategy has evolved over the past year,” said the company is “exploring the opportunity for a fast or free ad-supported streaming offering that would give consumers who do not want to pay a subscription fee access to great library content, while at the same time serving as an entry point to our premium service.”

The New York-based company lost $3.42 billion, or $1.50 per share, in the quarter. Its adjusted loss was 11 cents per share. Analysts surveyed by Zacks Investment Research expected breakeven results.

Revenue for the three months ended June 30 totaled $9.83 billion, below the $11.53 billion that Wall Street was calling for.

Shares tumbled 17% in Friday afternoon trading.

Jonathan Kees of Daiwa Capital Markets America Inc. said in a client note that “management made it a point to comment that the Warner Bros. businesses were worse than they expected and what they saw during the pre-merger review.”

“This is not a good start to the first quarter as a combined company,” he wrote.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Image:The New York Giants' Willie Mays poses for a photo during baseball spring training in 1972. M...

Associated Press

Willie Mays, Giants’ electrifying ‘Say Hey Kid,’ dies at 93

Willie Mays, whose singular combination of talent, drive and exuberance made him one of baseball’s greatest players, has died. He was 93.

1 day ago

Image: This photo provided by the Washington Department of Ecology shows a derailed BNSF train on t...

Associated Press

Judge orders BNSF to pay Washington tribe nearly $400M for trespassing with oil trains

BNSF Railway must pay the sum to a Native American tribe in Washington after it ran 100-car trains with crude oil on the tribe's reservation.

2 days ago

Photo: In this photo provided by Tieanna Joseph Cade, an amusement park ride is shown stuck with 30...

Associated Press

Crews rescue 28 people trapped upside down high on Oregon amusement park ride

Emergency crews in Oregon rescued 28 people after they were stuck dangling upside down high on a ride at a century-old amusement park.

2 days ago

juneteenth shooting texas...

Associated Press

2 killed and 6 wounded in shooting during a Juneteenth celebration in a Texas park

A shooting in a Texas park left two people dead and six wounded, including two children, on Saturday, authorities said.

3 days ago

Photo: Israeli soldiers drive a tank near the Israeli-Gaza border, in southern Israel, Wednesday, J...

Jack Jeffery, The Associated Press

8 Israeli soldiers killed in southern Gaza in deadliest attack on Israeli forces in months

An explosion in Gaza killed eight Israeli soldiers, the military said Saturday, making it the deadliest attack on Israeli forces in months.

4 days ago

Juanita Beach Kirkland...

Kathy McCormack and Nick Perry, The Associated Press

‘Tis the season for swimming and bacteria alerts in lakes, rivers

With summer about to start, many people flocking to their favorite swimming holes may also want to read up on bacteria warnings.

5 days ago

Warner Bros. Discovery Q2 results miss Wall Street’s view