Warner Bros. Discovery (WBD) missed fourth-quarter estimates on both the top and bottom line, the stock dropping Friday morning after posting this wider-than-expected loss. LightShed Partners Partner and Media and Technology Analyst Rich Greenfield joins Yahoo Finance to discuss the media studio's strategy around cost-cutting and streaming content. "There's no doubt that [CEO] David Zaslav and Gunnar Wiedenfels, their CFO... they've done a great job of living up to the free-cash flow numbers that they promised Wall Street," Greenfield explains. "The challenge is they haven't been able to grow the business... What you're seeing from investors is that It's hard to pay meaningfully for a company if they do not believe that there is future revenue and earnings growth. So, you can cut and certainly generate cash on the short-term, but cust-cutting is not a long-term strategy..." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Luke Carberry Mogan.
Warner Bros. Discovery (WBD) missed fourth-quarter estimates on both the top and bottom line, the stock dropping Friday morning after posting this wider-than-expected loss. LightShed Partners Partner and Media and Technology Analyst Rich Greenfield joins Yahoo Finance to discuss the media studio's strategy around cost-cutting and streaming content.
"There's no doubt that [CEO] David Zaslav and Gunnar Wiedenfels, their CFO... they've done a great job of living up to the free-cash flow numbers that they promised Wall Street," Greenfield explains. "The challenge is they haven't been able to grow the business... What you're seeing from investors is that It's hard to pay meaningfully for a company if they do not believe that there is future revenue and earnings growth. So, you can cut and certainly generate cash on the short-term, but cust-cutting is not a long-term strategy..."
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Luke Carberry Mogan.
The Wall Street Journal
Warner Bros. Discovery posted lower fourth-quarter revenue, dragged down by lagging results in its studios and cable networks. The media conglomerate, which owns cable networks such as TNT and CNN, as well as film studios and the Max streaming platform, said revenue fell 17% in its studios business. In the direct-to-consumer segment, which includes the company's streaming platforms, revenue rose 3% to $2.53 billion, with advertising revenue lifted by higher streaming engagement in the U.S. Max and ad-lite subscriber growth.
Reuters
Shares of the company, forged by the union of WarnerMedia and Discovery, tumbled nearly 10% before the bell, even as it beat Disney and Paramount to an inaugural annual profit for the streaming business. The results highlight the challenges faced by Hollywood after the strikes by writers and actors paralyzed production for months before ending in September and November, respectively. Warner Bros Discovery's studio business revenue sank 17% in the fourth quarter as it had little to follow the success of "Barbie", which released in July and smashed box office numbers with more than $1 billion in ticket sales worldwide.
Bloomberg
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The Wall Street Journal
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