Warner Bros Discovery, a global media and entertainment giant, has posted a loss of $10 billion for the second quarter, even as it did a $9.1-billion write down on its troubled network assets. The company wrote down the value of its TV assets in Q2 due to the uncertainty of fees from cable and satellite distributors and sports rights renewals.
The company took a $9.1 billion goodwill charge in the second quarter related to the reassessment of the value of those assets, which was set at the time of the merger of Warner Bros and Discovery. That value has declined over the last two and a half years as the popularity of streaming services has led to a drop in traditional television viewers.
Content revenue in its studio segment fell 6%, as it continues to see challenges from the underperforming game “Suicide Squad: Kill the Justice League”, released earlier this year, compared to last year’s top game “Hogwarts Legacy”.
Director George Miller’s much-awaited “Furiosa: A Mad Max Saga” also performed poorly at the box office following its May release.
Excluding one time items such as the goodwill charge, the company’s loss was 36 cents per share, wider than estimates of 22 cents per share.
The film raked in $67.5 million at the domestic box office, IMDb’s Box Office Mojo data showed. It had a reported budget of $168 million, according to analysts at TD Cowen.
The media giant reported revenue of $9.71 billion in the second quarter on Wednesday, compared to analysts’ estimate of $10.07 billion, according to LSEG data.
(With inputs from Reuters)
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