Warner Bros revenue disappoints on soft ad sales, weak box-office performance
WBD•Quarterly revenue misses estimates
Aug. 6 (Reuters) - Warner Bros Discovery missed second-quarter revenue expectations on Thursday, hurt by lackluster box-office performance and soft advertising sales due to the absence of NBA games.
Warner Bros Discovery reported revenue of $8.72 billion in the second quarter, well below the LSEG-compiled estimate of $9.29 billion.
Paramount merger faces legal hurdles
The unit is central to Warner Bros' $110 billion merger with Paramount, with the combined HBO Max and Paramount+ platforms expected to give the company greater scale to compete with streaming giants Netflix and Disney.
Britain's Competition and Markets Authority cleared the deal on Thursday, saying it was unlikely to harm competition in the country.
Still, the merger remains tied up in court, with California and 11 other states seeking to block it on antitrust grounds. Paramount has agreed to pause the deal until June 2027, while a federal trial is set for March 2027.
Studio and advertising weakness offsets streaming strength
Studio revenue slumped 39%, with releases including Mortal Kombat II and Supergirl failing to replicate the blockbuster success of last year's top grosser A Minecraft Movie and Sinners.
Warner's film slate is weighted toward the second half of the year, with major releases such as and expected to boost box-office performance.
