Warner Bros. Discovery Hits Profit Turnaround, Thanks To Theaters, Not TV

Warner Bros. Discovery (NASDAQ: WBD) stock gave up its gains after it reported fiscal second-quarter results on Thursday. The company reported a quarterly revenue of $9.81 billion, flat year-on-year (Y/Y) ex-FX growth, missing the analyst consensus estimate of $9.72 billion. 

The earnings per share (EPS) of 63 cents topped the analyst consensus estimate of 22-cent loss.

The company reported a net income of $1.58 billion, compared to a loss of $9.99 billion Y/Y. WBD reported an adjusted EBITDA of $1.95 billion, a 9% ex-FX growth.

Also Read: Warner Bros. Analyst Sees Rebound Ahead: Box Office Gains, DC Relaunch, Spin-Off Plan Could Unlock Hidden Value

Distribution revenues were flat ex-FX at $4.89 billion due to domestic linear pay-TV subscriber declines. Advertising revenues decreased 10% ex-FX at $2.22 billion due to domestic linear audience declines.

Content revenues increased 16% ex-FX to $2.47 billion, primarily driven by higher box office revenues due to the stronger performance of the theatrical releases in the current year quarter.

In the quarter, WBD generated $983 million in operating cash flow and $702 ...