Warner Bros Discovery writes down TV assets amid uncertainty over fees, sports rights renewals
(Reuters) -Warner Bros Discovery (NASDAQ:) recorded a $9.1 billion goodwill impairment charge and missed Wall Street expectations for quarterly revenue on Wednesday, hurt by a studio slump, sending its shares lower 7.8% in trading after the bell.
Excluding one-time charges such as the $9.1 billion one, the company’s loss was 36 cents per share, wider than estimates of 22 cents per share.
Content revenue in its studio segment fell 6%, as it continues to see challenges from the underperforming game “Suicide Squad: Kill the Justice League”, released earlier this year, compared to last year’s top game “Hogwarts Legacy”.
Director George Miller’s much-awaited “Furiosa: A Mad Max Saga” also performed poorly at the box office following its May release.
The film raked in $67.5 million at the domestic box office, IMDb’s Box Office Mojo data showed. It had a reported budget of $168 million, according to analysts at TD Cowen.
The media giant reported revenue of $9.71 billion in the second quarter on Wednesday, compared to analysts’ estimate of $10.07 billion, according to LSEG data.
