Warner Bros. Discovery Reports $3.4 Billion Net Loss, Revenue Slips

Warner Bros. Discovery Reports $3.4 Billion Net Loss, Revenue Slips

(Reuters) -Warner Bros. Discovery Inc on Thursday reported a second-quarter net loss of $3.4 billion and a slight decline in revenue, as the newly merged company reconfigures overlapping businesses from WarnerMedia and Discovery.

The company, which reported combined results for the first time, also disclosed 92.1 million streaming video subscribers.

The net loss includes about $2 billion of amortization of intangibles, about $1 billion of restructuring and other charges, and $983 million of transaction and integration expenses, the company said.

Warner Bros Discovery is expected to discuss a new streaming strategy for the merged company during its earnings, Reuters reported L1N2ZE2VJ, citing four sources familiar with the plans.

The move is seen as an attempt to attract more customers as streaming services face a slowdown in subscriber growth and steadily rising frequency of cancellations.

Customers ending their services hover at around 37% in the United States – a rate that could well increase as surging inflation forces a paring of discretionary spending.

Shares of the company, which reported revenue of $9.83 billion, fell 3.6% in extended trading.

(Reporting by Dawn Chmielewski in Los Angeles and Chavi Mehta in Bengaluru; Editing by Sriraj Kalluvila)