Why Warner Bros. Discovery (WBD) Stock Is Tumbling Premarket Today - Warner Bros. Discovery (NASDAQ:WBD)

Warner Bros. Discovery, Inc WBD reported a first-quarter FY23 revenue decline of 5% ex-FX year-on-year to $10.70 billion, missing the consensus of $10.78 billion. EPS loss of $(0.44) missed the consensus of $0.01.
Studios revenues were $3.21 billion, down by 7% ex-FX Y/Y on a pro forma combined basis. Content revenue decreased 8% ex-FX, as higher games revenue from the release of Hogwarts Legacy was more than offset by lower TV licensing.
Networks revenues were $5.58 billion, down by 7% ex-FX, excluding the impact of the 2022 Winter Olympic Games on a pro forma combined basis.
Distribution revenue decreased 3% ex-FX, primarily driven by increases in U.S. contractual affiliate rates, which were more than offset by declines in U.S. pay-TV subscribers.
Advertising revenue fell 14% ex-FX, primarily driven by audience declines in domestic general entertainment and news networks and soft advertising markets, mainly in the U.S. The broadcast of the 2022 Winter Olympic Games in Europe negatively impacted the year-over-year growth rate in the quarter.
DTC revenues were $2.46 billion, down by 1% ex-FX Y/Y on a pro forma combined basis. Distribution revenue decreased 1% ex-FX, as global retail subscriber gains were more than offset by a decline in wholesale revenues.
Global DTC subscribers increased by 1.6 million to 97.6 million at the end of Q1 vs. 96.1 million subscribers at the end of Q4. Global DTC ARPU was $7.48.
WBD used $(631) million in operating cash flow and held $2.6 billion in cash and equivalents.
Net loss was $(1.07) billion.
"In fact, we now expect our U.S. DTC business to be profitable for 2023 – a year ahead of our guidance." – David Zaslav, President & CEO
Price Action: WBD shares traded lower by 5.19% at $11.69 in the premarket on the last check Friday.

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Why Warner Bros. Discovery Stock Is Tumbling Premarket Today

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