Warner Brothers resorts to billion-euro write-down on TV channel
Published: Thursday, Aug 8th 2024, 02:20
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The media group Warner Brothers Discovery has resorted to writing off billions due to the decline of the traditional TV business. Viewers and advertising dollars are now going to streaming instead of cable TV.
In the USA, Wall Street reacted with a drop of more than eight percent for the share in after-hours trading at times. Warner wrote down 9.1 billion dollars (7.82 billion Swiss francs) on its TV channels such as CNN and Discovery. In the US in particular, advertising revenue from linear TV has been falling for a long time, partly because viewers are migrating from cable TV to streaming. Warner also recently lost lucrative broadcasting rights for the US basketball league NBA. In streaming, the number of Warner customers rose by 3.6 million to 103.3 million within three months. Among other things, the Group owns the streaming service Max with the HBO program.
In view of the write-down, Warner posted a quarterly loss of around ten billion dollars following a loss of 1.24 billion dollars in the same quarter of the previous year. Sales fell by six percent year-on-year to 9.7 billion dollars. The TV channel division contributed just under 5.3 billion dollars - eight percent less than a year ago.
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