Warner Bros. Suffers Worst Rout on Record Due to Ad Slump
- Hollywood strikes and bleeding of TV subscribers are a drag
- Streaming business reported surprise profit as prices rise
Warner Bros. Studios in Burbank, California, US.
Photographer: Eric Thayer/BloombergThis article is for subscribers only.
Warner Bros. Discovery Inc. shares fell the most on record after the entertainment giant reported a drop in TV network advertising and signaled the market may remain challenged next year.
Advertising revenue in the traditional TV business fell 12% to $1.7 billion in the third quarter, the company reported Wednesday. The hit weighed on profitability and led to third-quarter a loss of 17 cents a share, wider than Wall Street estimates of an 8.6-cent loss, according to data compiled by Bloomberg.