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Business

Warner Bros. Discovery Revenue Drops 11% on NBA Loss, Weak Film Slate

Warner Bros. Discovery Inc. reported a steep drop in sales for the second quarter, missing Wall Street expectations as the loss of National Basketball Association rights and a weak film lineup dragged down results. Total revenue fell 11% to $8.7 billion, below the $9.2 billion analysts had projected. The company's diluted earnings per share came in at 6 cents, beating estimates of a loss of 10 cents a share. The revenue decline was attributed to the absence of NBA games, which weighed on the company's networks, and a film slate that compared poorly with last year, including the underperforming 'Supergirl' movie. Warner Bros. Discovery had been bracing for the impact of losing NBA broadcast rights, a significant blow to its sports portfolio. The weak theatrical performance further compounded the revenue shortfall, as the studio struggled to match the strong lineup it had in the previous year. Despite the revenue miss, the better-than-expected earnings per share offered some sign of cost discipline. The results underscore the challenges facing the media company as it navigates a shifting entertainment landscape and the aftermath of high-profile rights losses.

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