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Warner Bros. Discovery shares fell 12% after the company reported second-quarter 2024 results on Aug. 7. Part of the reason was that the entertainment giant took a $9.1 billion write-down on its U.S. television business.
As a result, the company’s second-quarter performance fell short of analysts’ expectations.
The write-down was because the TV business was carried at a premium to its market value, which has fallen due to the shift toward digital and streaming.
Revenue for the quarter was $9.7 billion, also below analysts’ expectations.
Revenue at Warner Bros. Discovery’s television business, which includes TBS, TNT, Discovery and TLC, fell 8% to $5.27 billion.
On the other hand, the streaming business performed better. Max subscribers grew by 3.6 million during the quarter. According to others, Max had more than 103 million streaming customers at the end of the June 30 quarter. CNBC.
However, this did nothing to help user revenue, which fell 5% to $2.57 billion. The decline was due to fewer third-party licensing agreements, which meant content revenue fell 70%.
Streaming ad revenue grew 99%, in part because Max’s ad-funded product was popular with streaming customers.
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