Warner Bros. Discovery, Inc WBD reported a fourth-quarter fiscal 2023 revenue decline of 7% ex-FX year-on-year to $10.28 billion, marginally missing the consensus of $10.37 billion. EPS loss of $(0.16) missed the consensus loss of $(0.06).
Studios revenues were $3.17 billion, down 18% ex-FX Y/Y on a pro forma combined basis. Content revenue decreased 20% due to the impact of the WGA and SAG-AFTRA strikes and specific large licensing deals in the prior year.
Networks revenues were $5.04 billion, down by 8% ex-FX, on a pro forma combined basis.
Distribution revenue decreased 3% ex-FX, primarily driven by declines in U.S. pay-TV subscribers.
Advertising revenue fell 14% ex-FX, primarily driven by audience declines in domestic general entertainment and news networks and soft advertising markets, mainly in the U.S.
DTC revenues were $2.53 billion, up 3% ex-FX Y/Y on a pro forma combined basis. Distribution revenue increased 4% ex-FX, primarily attributable to new partnership launches and price increases in the U.S. and specific international markets.
Total DTC subscribers decreased to 52.0 million from 54.6 million a year ago. Global DTC ARPU was $7.94, a 7% ex-FX increase from the prior year.
WBD generated $3.58 billion in operating cash flow and held $3.78 billion in cash and equivalents. Net loss was $(400) million.
“We have an attack plan for 2024 that includes the roll-out of Max in key international markets, a more robust creative pipeline across our film and TV studios, and further progress against our long-range financial goals and are confident in our ability to drive sustained operating momentum and enhanced shareholder value,” said David Zaslav, President & CEO.
On the conference call, the company mentioned it is on track to achieve $1 billion EBITDA by 2025.
Price Action: WBD shares traded lower by 8.79% at $8.72 premarket on the last check Friday.
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