Warner Bros. Discovery Q1 earnings miss expectations: revenue falls 7%, but streaming grows strong

Warner Bros. Discovery, Inc., the U.S.-based multinational mass media and entertainment conglomerate announced its earnings today for the first quarter of FY24.

The company generated a revenue of $9.958 billion, contradictory to experts’ expectations of $10.27 billion, with a 7% decrease as compared with the $10.70 billion earned in the first quarter of the previous year. 

Warner Bros. Discovery, Inc. saw an adjusted loss of 4966 million or $0.40 per share. The shares of the company fell by 3%.

In the first quarter, network advertising revenue saw an 11% downfall and the reported network ad revenue was of $1.99 billion.

The total Adjusted EBITDA was $2,102 million for this quarter.

Cash provided by operating activities increased to $585 million. Free cash flow increased to $390 million, with a $1.3 billion improvement compared to Q4 of FY23.

Warner Bros. Discovery, Inc.’s, President & CEO David Zaslav says,

“We are pleased with our progress in the first quarter as evidenced by strong results in important KPIs. We delivered meaningful growth in our streaming business with a nice acceleration in ad sales, generating nearly $90 million in positive EBITDA for the quarter. We will soon be rolling out Max to 29 countries across Europe, and the content lineup for Max over the coming year is one of our strongest ever. Warner Bros. Pictures also had a strong start to the year as the first studio to reach $1 billion in both overseas and global box office, and they have a great slate in the works. Importantly, we once again delivered strong free cash flow, even in our seasonally weakest FCF quarter. We continue to make bold moves to transform our company for the future as we position ourselves to take full advantage of the opportunities ahead.”

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