'Barbie' success helps Warner Bros Discovery weather strike effects, weak ad market

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Warner Bros Discovery (WBD.O) topped third-quarter profit estimates on Wednesday as the box-office hit 'Barbie' helped offset a sluggish advertising market and a studios segment starved of content due to two Hollywood strikes.

The exterior of the Warner Bros. Discovery Atlanta campus is pictured after the Writers Guild of America began their strike against the Alliance of Motion Pictures and Television Producers, in Atlanta, Georgia, U.S. May 2, 2023. REUTERS/Alyssa Pointer/ File Phototopped third-quarter profit estimates on Wednesday as the box-office hit "Barbie" helped offset a sluggish advertising market and a studios segment starved of content due to two Hollywood strikes.

The media company forged by the union of WarnerMedia and Discovery posted adjusted core earnings of $2.97 billion, above estimates of $2.92 billion, according to LSEG data. Overall third-quarter revenue of $9.98 billion was in line with estimates. The results put the company "on track to meaningfully exceed $5 billion for the year and contributing to our nearly $12 billion in debt paydown to date," CEO David Zaslav said.

The company's streaming unit posted an adjusted core profit of $111 million, compared with a loss of $634 million a year ago. Global average revenue per user in the segment rose 6%.

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