Warner Bros Discovery misses estimates for quarterly revenue

By Thomson Reuters May 9, 2024 | 6:17 AM

(Reuters) -Warner Bros Discovery missed Wall Street estimates for first-quarter revenue on Thursday, weighed down by a weak advertising market and strike-related delays at its studio segment.

Shares of the company were down 1.9% in premarket trading.

Subdued advertising trends in the U.S. and certain international markets amid concerns over higher-for-longer interest rate environment have posed challenges for Warner Bros Discovery at its Networks segment.

The company is also grappling with a wider decline in traditional television viewers due to the growing popularity of streaming services.

Studio revenue was impacted by underperformance of the game “Suicide Squad: Kill the Justice League” released this quarter, compared to “Hogwarts Legacy” released a year before, which became the top game of the year.

The company reported revenue of $9.96 billion for the three months ended March, compared with analysts’ average estimate of$10.23 billion, according to LSEG data.

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Sriraj Kalluvila)