Warner Bros. Discovery reports wider Q2 loss on $9.1B hit to networks unit

Investing.com -- Warner Bros. Discovery reported Wednesday a wider second-quarter loss after taking a $9.1 charge in its networks unit following the loss of lucrative NBA media rights.

Warner Bros Discovery Inc (NASDAQ: WBD) fell 6% in recent trade.

The entertainment company reported a loss of $4.07 a share on revenue of $9.71. Analysts were expecting a loss of of $0.19 on revenue of $10.07B.

The wider loss comes as the company took a $9.1B hit from its networks segment amid "continued softness in the U.S. linear advertising market, and uncertainty related to affiliate and sports rights renewals, including the NBA."

Content revenue decreased 6%, driven by a 27% plunge in EV TV revenue as pressured by lower licensing sales.

Global direct-to-conumer subscribers were 103.3 million at the end of Q2, an increase of 3.6 million subscribers versus Q1. Global DTC average revenue per user was $8.00, up 4% in constant currency sequentially in Q2.

The company pledged, however, to pursue new bundling opportunities, with "the goal to get Max on the devices of more consumers faster," adding that it was "seeing clear evidence that these and other actions we are taking will help drive segment profitability in the second half of the year and into 2025 and beyond."

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