Media and entertainment company's Q2 revenue fell 11% yr/yr, driven by lower advertising and content
Net income for Q2 dropped 91% yr/yr, impacted by acquisition-related amortization and restructuring expenses
Free cash flow for Q2 declined yr/yr, mainly due to higher net content investment
Key details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Free Cash Flow
$572 mln
Result drivers
NBA absence - Co said the absence of NBA programming in the quarter negatively impacted advertising revenue growth rates across segments
Theatrical slate - Co attributed lower Studios revenue to decreased box office performance compared to prior year releases such as A Minecraft Movie, Sinners, and Final Destination Bloodlines
Streaming growth - Co said streaming segment revenue increased due to global HBO Max expansion and new distribution deals
Analyst coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 17 "hold" and 1 "sell" or "strong sell"
WBD•
