Warner Bros Discovery rises as it lowers adjusted EBITDA outlook
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Warner Bros Discovery (NASDAQ:WBD) shares erased earlier losses and rose more than 2% on Tuesday as the company said in a filing that it expects lower adjusted EBITDA than previously forecast due to the ongoing Hollywood strikes.
In a filing, Warner Bros. Discovery (WBD) said it sees a negative impact between $300M and $500M due to the ongoing strikes and now expects adjusted EBITDA for the full-year to be between $10.5B and $11B.
"WBD continues to prioritize and work diligently with other industry leadership to resolve the current WGA and SAG-AFTRA strikes in a manner that is fair and values the important work of, and partnership with, the writers and actors," the company said in the filing.
Separately, the company boosted its free cash flow expectations for the full-year to be "at least" $5B, including surpassing $1.7B in the third-quarter, due partially to the strike, as well as the strong performance of the box office smash, Barbie.
Barbie recently surpassed The Super Mario Bros. movie to become the highest grossing movie of 2023. It also recently topped Harry Potter and the Deathly Hallows: Part 2 to become Warner's highest grossing movie ever.
Warner Bros. Discovery (WBD) CEO David Zaslav is slated to appear at the Goldman Sachs Communacopia + Technology Conference tomorrow, where he is expected to discuss the ongoing strikes and more.
Warner Bros. Discovery (WBD) shares fell more than 12% on Friday as Charter Communications (CHTR) said it could get rid of its video business altogether amid an exceptionally difficult carriage dispute between itself and Walt Disney (DIS).

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