Mumbai : Warner Bros. Discovery reported a net loss of $2.1 billion in the fourth quarter of its fiscal year after writing down $1.85 billion in assets and incurring nearly $1.2 billion in restructuring costs. The company reported revenue of $11 billion.
Excluding the effects of foreign exchange, revenue decreased by 9 per cent , and the business suffered a 14 per cent decline in ad sales for its TV networks even as it attempted to increase subscriber numbers for its HBO Max and Discovery+ streaming services.
In a statement, Warner Bros. Discovery CEO David Zaslav suggested that much of the hard work involved knitting together the former WarnerMedia and Discovery Communications, was complete. “We’re seeing strong momentum across the enterprise,” he said, noting that “we believe we have repositioned our businesses to take full advantage of the many opportunities ahead.”
However, despite its efforts to boost the financial performance of its new streaming assets, the massive media conglomerate experienced decreases in its core TV business.
Revenue for the TV networks owned by Warner Bros. Discovery, including Discovery, CNN, and Food Network, fell 6 per cent to about $5.5 billion, with losses in affiliate fees and advertising. The company's studio activities witnessed a 23 per cent decrease in revenue as a result of less money being made from licensing its content.
Meanwhile, losses in its streaming operations have been reduced. The operating loss in its streaming operations for its streaming assets was $217 million in the quarter, compared to pro-forma losses of $728 million the previous year.
During a conference call with investors Warner Bros. Discovery CFO Gunnar Wiedenfels,, announced a new target of $4 billion in cost savings by the end of 2024.
