Warner Bros. Discovery faced a 9% drop in stock price following disappointing Q4 earnings, with weaknesses in advertising sales despite Max streaming revenue progress. Shares closed at $9.56 and dropped to $8.75 post-market opening.
CEO David Zaslav reassured analysts of the company’s long-term strength during the conference call. Q4 saw a 7% revenue decline and a 5% drop in adjusted earnings, impacted by losses in Warner Bros. studio, linear networks group, and a $55 million adjusted EBITDA loss for the streaming unit.
Despite the challenges, Zaslav emphasized the company’s efforts to strengthen its balance sheet, reduce debt, and focus on driving free cash flow. While shares have seen an 18% decrease year-to-date and a 46% drop over the past year, Zaslav remains optimistic about the company’s future prospects.
