Warner Bros Discovery says strike effects, weak ad market to linger into 2024

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Warner Bros Discovery says strike effects, weak ad market to linger into 2024

© Reuters. 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/) top quarterly profit estimates, but the effect of two Hollywood strikes and a weak advertising market could continue to hamper the company's earnings into next year, the company said on Wednesday.

"It is becoming increasingly clear now that much like 2023, 2024 will have its share of complexity, particularly as it relates to the possibility of continued sluggish advertising trends," he said on the call."We don’t see when this is going to turn." The company reported free cash flow of $2.06 billion, compared with $1.72 billion in the prior quarter, as it spent less on production as a result of the strikes. This surpassed expectations for $1.74 billion, according to Visible Alpha.

 

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