Warner Bros Discovery expects earnings hit of up to $500 million
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The Warner Brothers Corporation. Discovery is preparing investors in case the writers’ and actors’ strikes continue.
In a Tuesday securities filing, the company said it had adjusted its expectations, assuming the strikes would continue through the end of the year. It notes that this isn’t a prediction of when strikes will end, but rather illustrates how much production is being halted as a result of the strikes.
The Warner Brothers studio. Discovery is expecting its adjusted earnings before interest, taxes, depreciation and amortization will take a hit of $300 million to $500 million, putting it in the full-year range of $10.5 billion to $11 billion.
Warner Bros. As well as having one of the largest portfolios of pay TV networks, Discovery also owns a movie and TV studio.
Despite the fact that [Warner Bros.] is hopeful these strikes will be resolved soon, it cannot predict when they will end,” the company said in a securities filing on Tuesday.
Last month, Warner Bros. Discovery’s “Dune: Part Two” was knocked off the 2023 box-office slate due to the labor strikes that threaten its marketing abilities. The film moved from this fall to March 15, 2024, taking the calendar spot from “Godzilla x Kong: The New Empire,” which moved to April 12, 2024.
In addition to earnings showing the impact, the strikes have some effect on Warner Bros. Discovery free cash flow. However, raising its free cash flow expectations for this year to at least $5 billion is also in part thanks to the box-office hit “Barbie,” which is now Warner Bros.′ top-grossing release.