Warner Bros Discovery lowers profit outlook as Hollywood strike drags on
Entertainment giant now expects adjusted earnings to fall about $300m-$500m
05 September 2023 - 20:08
bySamrhitha Arunasalam
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Screen Actors Guild members and supporters on a picket line outside Paramount Studios in Los Angeles, California, US on July 17 2023. Picture: ERIC THAYER/BLOOMBERG
Warner Bros Discovery on Tuesday lowered its annual core profit forecast as it expects the hit from the Hollywood actors and writers strikes to drag until the end of the year.
It now expects adjusted earnings for the full year to be in the range of $10.5bn-$11bn.
Warner Bros Discovery had previously provided financial guidance for 2023 assuming the strikes would be resolved by early September and now expects adjusted earnings to be reduced by about $300m-$500m.
Shares of the company fell nearly 1% in trading before the bell.
The company added CEO David Zaslav would be participating in an investor conference on September 6, and expects to discuss, among other topics, the impact of the ongoing WGA and SAG-AFTRA strikes.
The studio had previously noted that if the strikes were to continue through the end of the year, it expected marginal gain in free cash flow and a slight decrease in adjusted earnings.
It is now raising full-year free cash flow expectations to at least $5bn, with the third quarter alone expected to exceed $1.7bn due to the strong performance of the Barbie movie and strike-related factors.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Warner Bros Discovery lowers profit outlook as Hollywood strike drags on
Entertainment giant now expects adjusted earnings to fall about $300m-$500m
Warner Bros Discovery on Tuesday lowered its annual core profit forecast as it expects the hit from the Hollywood actors and writers strikes to drag until the end of the year.
It now expects adjusted earnings for the full year to be in the range of $10.5bn-$11bn.
Warner Bros Discovery had previously provided financial guidance for 2023 assuming the strikes would be resolved by early September and now expects adjusted earnings to be reduced by about $300m-$500m.
Shares of the company fell nearly 1% in trading before the bell.
The company added CEO David Zaslav would be participating in an investor conference on September 6, and expects to discuss, among other topics, the impact of the ongoing WGA and SAG-AFTRA strikes.
The studio had previously noted that if the strikes were to continue through the end of the year, it expected marginal gain in free cash flow and a slight decrease in adjusted earnings.
It is now raising full-year free cash flow expectations to at least $5bn, with the third quarter alone expected to exceed $1.7bn due to the strong performance of the Barbie movie and strike-related factors.
Reuters
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