Today, Warner Bros. Discovery, Inc. reported financial results first quarter of 2022 (January 1 to March 31). The results are for Discovery, Inc. do not include the performance of the first quarter of WarnerMedia, which was received April 8th.
As we saw last week, AT&T reported that WarnerMedia’s operating revenue decreased by 32.7% annually. In terms of operating profitability and cash flow, “WarnerMedia is really below my expectations,” Warner Bros. Discovery’s chief financial officer, Gunnar Wiedenfels, said the revenue comes today. However, the company remains confident of achieving its $ 3 billion annual revenue target, despite CNN + closing on April 30.
Meanwhile, Discovery Inc. was $ 3.16, an increase of 13%. U.S. advertising revenue increased by 5%, distribution revenue increased by 11%. U.S. Network revenues increased 7% compared to a quarter of a year ago to less than two million dollars, and total U.S. net operating expenses fell 8%.
Discovery Business’s net revenue for the first quarter of 2022 was $ 456 million, or 69 cents per share, up to $ 40 million, or 21 cents per share, a year ago. The result exceeded Wall Street expectations. An average of 12 analysts surveyed Zacks Investment Research It was available at 56 cents per share.
The company ended Q1 2022 with 24 million DTC (direct customer) customers, up two million customers by the end of the fourth quarter. However, the subscriber base for Discovery March 31 was 4% lower than last year.
In this morning’s issue, Zaslav stressed that the company “is not trying to win the direct battle of consumer consumption,” said the head of the WBD. As he says has already saidHe promised that the new company, WarnerMedia-Discovery, would “invest the scales wisely.”
Zaslav added that the company has provided 100 million integrated customers with “real-time innovation over time to drive strategic decision-making.”
During the call, Discovery Inc. showed how unfortunate Warner Media’s revenue decline was but they wanted to focus on the future. It is still a few days old, so hopefully, the mega merger will see a combined revenue growth, thanks to its large library and its growing customer base.
It will be interesting to see this new structure come to fruition, and how CNN will dust it off after failing to provide coverage. The plan is not “fully baked,” according to the company, and will not produce anything new or “strictly pursue customer goals.” Knowing the best way to combine HBO Max and Discovery + and managing churn will be her priority.