This post was originally published on this site
Media companies have been looking to strike the right balance between spending on content and boosting profitability.
Under Chief Executive Officer David Zaslav, Warner Bros Discovery has been seeking to run its direct-to-consumer business, which includes the “Max” streaming service, more efficiently.
Net loss for the quarter came in at $1.24 billion, compared with a loss of $3.42 billion a year earlier. The company reported a more than 16% drop in total costs and expenses in the quarter.
“Our Direct-to-Consumer business … in the wake of the successful launch of Max in the U.S., is tracking well ahead of our financial projections,” said CEO David Zaslav.
Warner Bros Discovery’s new streaming service launched during the quarter in the United States, combining HBO Max’s scripted entertainment with Discovery’s reality shows.
The company forged by the union of WarnerMedia and Discovery Inc reported second-quarter revenue of $10.36 billion, missing analysts’ average estimate of $10.44 billion, according to Refinitiv data.
Free cash flow came in at $1.72 billion in the three months ended June, beating estimates of $987 million, according to Visible Alpha.
