Warner Bros. Discovery has braced the market for some big losses. They have announced they expect to take a hit of up to $500 million and they claim it is:
“…predominantly due to the impact of the strikes…”
The Hollywood Reporter is covering a regulatory filing made yesterday which featured the company lowering its 2023 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast to $10.5 billion-$11.0 billion.
In the filing, the company said they:
“…now assumes the financial impact to WBD of these strikes will persist through the end of 2023.”
It is not all bad news for Warner Bros. Their cash flow has improved considerably thanks to all that sweet Barbie money. In the report, Zaslav says:
“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.”
Warner Bros. has delayed some of its 2023 slate into 2024 to avoid having to promote some big releases like Dune: Part Two with no actors present for any publicity activities. Most of Hollywood’s big players will be in San Francisco for a Goldman Sachs event later this week, where no doubt the talk of the town will be the ongoing strikes and their economic impact.
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