Warner Bros. Discovery (WBD) continued to plummet on Thursday, dropping 16% in midday trading after the company ລາຍງານການສູນເສຍ 3.42 ຕື້ໂດລາ ໃນໄຕມາດທີສອງ, ສ່ວນຫນຶ່ງແມ່ນຍ້ອນອຸປະສັກທີ່ກ່ຽວຂ້ອງກັບການລວມຕົວທີ່ຜ່ານມາ.
“We knew it was going to be messy, but this was pretty awful,” Geetha Ranganathan, Bloomberg Intelligence senior media analyst, told Yahoo Finance.
The company expects 2022 adjusted EBITDA to come in between $9 billion and $9.5 billion, a decline from previous forecasts of $10 billion. Management also cut its full-year 2023 EBITDA guidance from $14 billion to $12 billion.
“This raises the question of what is the growth path for this company, because there’s no imminent catalyst,” Ranganathan said, explaining that the streaming business largely relies on future execution while the majority of the company’s revenues remain tied in its legacy TV business — a risk as consumers cut the cord.
“The end of 2022 and into 2023 — it looks pretty bleak,” she continued.
Analysts remain split on what the future might hold for the streaming giant.
CFRA maintained its Hold rating on the stock. The firm also lowered its price target by $7 to $16 a share.
“We think WBD lags in a tough competitive TV market facing larger streaming providers,” analyst Ken Leon wrote in a new note.
Cowen analyst Doug Creutz, meanwhile, reiterated his Outperform rating, setting a price target of $24 a share. The analyst credited the conglomerate’s cost-cutting goals, writing that “the company will be managed first and foremost for free cash flow, and we think that is a message that will resonate.”
ກ່ອນໜ້ານີ້ Warner Bros. Discovery ໄດ້ກ່າວວ່າມັນຄາດວ່າຈະຫຼຸດ ມູນຄ່າ 3 ຕື້ໂດລາ ໃນສອງປີຂ້າງ ໜ້າ.
As a result, job cuts are largely expected with Ranganathan surmising that “layoffs will be inevitable” as the company maintains a “laser focus when it comes to extracting synergies.”
HBO Max, Discovery+ merger ‘makes sense’
Zaslav ໃຫ້ຄວາມກະຈ່າງແຈ້ງເລັກນ້ອຍກ່ຽວກັບອະນາຄົດຂອງ HBO Max ໃນລະຫວ່າງການໂທຫາລາຍໄດ້ຂອງບໍລິສັດ. ລາວໄດ້ຢືນຢັນວ່າບໍລິການສະຕີມມິງຈະສົມທົບກັບ Discovery+ ໃຫ້ເປັນແພລະຕະຟອມດຽວ, ກໍານົດຈະເປີດຕົວໃນລະດູຮ້ອນຫນ້າ.
Ranganathan said the move “makes sense” given the portfolio of assets with Discovery leaning toward more global and nonfiction, while HBO Max is compromised of more expensive, higher quality scripted programming.
She added that the decision also makes sense from a financial perspective given the duplicate management costs.
Combining the two entities “makes the product all the more robust — a must-have kind of service, which is exactly what their approach is going to be,” the analyst predicted.
ໃນໄລຍະຊົ່ວຄາວ, ທັງສອງບໍລິການຈະແບ່ງປັນເນື້ອໃນ. ບໍລິສັດໄດ້ສະຫນອງການປັບປຸງການດໍາເນີນໂຄງການຂອງຕົນກ່ອນທີ່ຈະປະກາດ, ເປີດເຜີຍວ່າເນື້ອໃນທີ່ເລືອກຈາກ Chip ແລະ Joanna Gaines ' Magnolia Network ຈະມາຮອດ HBO Max ໃນເດືອນກັນຍາ. ມັນຈະຍັງຄົງມີຢູ່ໃນ Discovery+, ເຊັ່ນກັນ.
ນອກຈາກນັ້ນ, CNN ຈະໄດ້ຮັບສູນກາງຂອງຕົນເອງໃນ Discovery+ ເຊິ່ງຈະປະກອບມີຊຸດຕົ້ນສະບັບເຊັ່ນ "Stanley Tucci: ຄົ້ນຫາອິຕາລີ" ແລະ "Anthony Bourdain: Parts Unknown."
Profitability has quickly materialized as a top concern for investors with streaming and production costs continuing to skyrocket.
Amid its cost-cutting agenda, Warner Bros. Discovery revealed that the company is weighing a free, ad-supported streaming plan to attract cost-conscious consumers and reduce churn.
HBO Max and Discovery+ already boast their own respective ad tiers, making the rollout a fairly seamless process; however, Ranganathan warned that the benefits of an ad-supported tier, similar to the company’s streaming endeavors as a whole, will all “come down to execution.”
The company expects to see 130 million global streaming subscribers by 2025. It ended the second quarter with 92.1 million total subscribers, up about 1.7 million from the first quarter. For context, Netflix boasts just over 220 million global subscribers to date.
It’s going to come down to execution…Geetha Ranganathan, Bloomberg Intelligence senior media analyst
Warner Bros. Discovery estimated that EBITDA for global streaming will hit $1 billion by 2025 with the streaming business breaking even by 2024. It expects peak EBITDA loss in streaming by this year.
“There will be volatility but, in the long run, their goals seem very reasonable,” the analyst maintained, explaining that the media conglomerate’s $1 billion EBITDA target feels conservative, in addition to its margin goal of 20% for streaming.
Overall, Ranganathan emphasized that the company won’t have the most successful streaming platform on the market — but, ultimately, that might not matter.
“I don’t think they’re going to be the number one streaming service,” she predicted.
“But that’s okay — as long as they’re able to make money.”
Alexandra ເປັນຜູ້ລາຍງານຄວາມບັນເທີງ ແລະອາຫານອາວຸໂສຢູ່ Yahoo Finance. ຕິດຕາມນາງໃນ Twitter @ alliecanal8193 ແລະສົ່ງອີເມວຫານາງທີ່ [email protected]
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Source: https://finance.yahoo.com/news/warner-bros-discovery-results-pretty-awful-as-growth-plan-looks-bleak-analyst-181719269.html