WARNER Bros Discovery missed Wall Street estimates for first-quarter revenue on Thursday (May 9), weighed down by a weak advertising market and strike-related delays at its studio segment.
Shares of the company were down 1.9 per cent in premarket trading.
Subdued advertising trends in the US 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 US$9.96 billion for the three months ended March, compared with analysts’ average estimate ofUS$10.23 billion, according to LSEG data. REUTERS
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