Warner Bros. Discovery Prepares for Potential Effects of Ongoing Strikes

One sentence summary – Warner Bros. Discovery is warning investors of the potential impact of ongoing strikes involving writers and actors, estimating losses of $300 million to $500 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), as the strikes have led to production halts and affected the company’s operations, although it remains hopeful for a resolution and CEO David Zaslav has been actively involved in negotiations.

At a glance

  • Warner Bros. Discovery is preparing investors for the potential effects of ongoing strikes involving writers and actors.
  • The strikes have been ongoing for over 100 days and involve members of the Writers Guild of America union and actors.
  • Warner Bros. Discovery expects a significant hit to its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), estimating losses of $300 million to $500 million.
  • The strikes have led to production halts in the company’s TV and movie studios, impacting its operations.
  • Despite the strikes, Warner Bros. Discovery raised its free cash flow expectations for the year, partly due to the success of “Barbie.”

The details

Warner Bros.

Discovery, the owner of a movie and TV studio with the largest portfolio of pay-TV networks, is preparing investors for the potential effects of ongoing strikes involving writers and actors.

The strikes have been ongoing for over 100 days.

They involve members of the Writers Guild of America union and actors.

As a result of the strikes, Warner Bros.

Discovery expects a significant hit to its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).

The company estimates a range of $300 million to $500 million in losses.

The work stoppage has led to production halts in the company’s TV and movie studios.

This has impacted its operations.

Warner Bros.

Discovery remains hopeful for a resolution to the strikes.

However, the company cannot predict when they will end.

Negotiations between the studios and writers have been intense.

CEO David Zaslav has been actively involved in discussions.

The labor strikes have already caused an impact on Warner Bros.

Discovery’s business.

The film “Dune: Part Two” has been removed from the 2023 box office slate.

This has affected marketing plans.

The strikes have also affected the company’s free cash flow.

Despite the ongoing strikes, Warner Bros.

Discovery raised its free cash flow expectations for the year.

This is partly due to the success of “Barbie,” which emerged as its top-grossing release.

The company still expects to meet its net leverage target.

Previously, Warner Bros.

Discovery had assumed that the strikes would end in early September.

However, the company has revised its expectations.

It now assumes that the strikes will continue through the end of the year.

As a result, the company is adjusting its financial outlook.

It is also preparing investors for the potential impact.

In related news, Warner Bros.

Discovery’s CEO will be speaking at Goldman Sachs’ Communacopia + Technology conference.

The ongoing strikes and their effects on the company’s operations may be discussed at the conference.

Overall, Warner Bros.

Discovery is actively managing the impact of the strikes.

It is adjusting its expectations and working towards a resolution.

However, the company remains cautious about the timeline for the strikes’ conclusion.

It is also cautious about the potential financial implications.

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cnbc.com
– Warner Bros. Discovery is preparing investors for the potential effects of ongoing writers’ and actors’ strikes.
The company adjusted its expectations, assuming that the strikes will continue through the end of the year.
– Warner Bros. Discovery expects a hit of $300 million to $500 million in adjusted earnings before interest, taxes, depreciation, and amortization.
The strikes have been ongoing for over 100 days, with members of the Writers Guild of America union and actors participating.
The work stoppage is impacting the company’s TV and movie studios as production is halted.
– Warner Bros. Discovery is the owner of a movie and TV studio and has the largest portfolio of pay-TV networks.
The company is hopeful for a resolution to the strikes but cannot predict when they will end.
– Negotiations between the studios and writers have been intense, with CEO David Zaslav involved in discussions.
The labor strikes have caused the film “Dune: Part Two” to be removed from the 2023 box office slate, affecting marketing plans.
The strikes also have an impact on Warner Bros. Discovery’s free cash flow.
Despite the strikes, the company raised its free cash flow expectations for the year, partly due to the success of “Barbie” as its top-grossing release.
– Warner Bros. Discovery still expects to meet its net leverage target.
The company had previously assumed that the strikes would end in early September, but the revised expectations account for a potential continuation through the end of the year.
– Warner Bros. Discovery’s CEO will be speaking at Goldman Sachs’ Communacopia + Technology conference.

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