Warner Bros Discovery (WBD) CEO David Zaslav has called for a swift resolution to the US actors and writers’ strikes, even though the company revealed that it saved around $100m during its second quarter because of the stoppages.
Discussing the media giant’s results with analysts, Zaslav said he is “very focused” on the labour dispute. “It needs to be resolved in a way that the creative community feels fairly compensated and fully valued,” he urged.
“We have to focus on getting that done,” Zaslav added. “I’m hopeful that it’s going to happen soon.”
Also during the analysts session, WBD chief financial officer Gunnar Wiedenfels said the company saw savings “in the low $100m range” during the quarter as a result of the strikes. He added that in its financial planning the company is assuming a return to work “in early September.”
For its second quarter – which ended before the release of Warner Bros blockbuster Barbie – WBD reported revenues of $10.36bn, compared to $9.83bn for the same quarter in 2022. Net loss was $1.24bn, compared to a loss of $3.42bn the year before.
With releases during the quarter having included major under-performer The Flash, WBD’s studios segment saw revenues decline to $2.58bn, compared to $2.8bn in the prior year.
Zaslav said that “while the studio’s performance has been challenged in recent years…we are taking meaningful steps with respect to the creative directions of both Warner Bros Pictures Group and DC.”
WBD’s studios division will get a huge boost in the third quarter from the success of Barbie, which Zaslav described as a “creative tour de force and global cultural phenomenon.”
The second quarter also included the launch of WBD’s Max streaming service (a combination of the existing Discovery+ and HBO Max services) and the company’s direct-to-consumer (DTC) segment reported revenues of $2.73bn, up from $2.22bn. Global DTC subscribers fell to 95.8m from 97.6m, with most of the decline coming in the US and Canada.
Zaslav reported that Max will launch in new markets around the world over the coming year and said he sees “significant opportunities internationally in markets we have yet to attack.”
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