According to Bloomberg consensus estimates, Wall Street expects:
Income: 11.91 billion is expected
Adj. earnings per share (EPS): $0.08 is expected
Total DTC Subscribers: 1.65 million is expected. net additions
Analysts predict the streaming conglomerate will face a messy quarter as it integrates two businesses while also cutting costs to boost profitability.
The guidelines require that in 2022 300 million would be reached. USD profits, and macroeconomic headwinds could hurt advertising revenue, a long-term risk for media companies.
Still, the consensus estimate is that U.S. advertising rose 2.4% in the second quarter, helped by Turner Networks.
Heading into earnings, investors will want more clarity on the platform’s direct-to-consumer streaming strategy, as well as the fate of HBO Max, which according to several reports is hanging in the balance.
The company plans to lay off 70% of the development business, according to The Wrap.which quotes “several insiders.”
CEO David Zaslav, known for his cost-cutting leadership style, will announce major restructurings for HBO Max and Discovery+ during or shortly after earnings results, the sources said.
The Wrap explained that the move will “result in the demise of HBO Max, significant layoffs of executives and staff to reduce HBO layoffs, and a combined streaming service with Discovery+.”
There will also be a tighter line between scripted and non-scripted content, the source says.
Warner Bros. Discovery has previously said it expects to cut back 3 billion dollars worth of spending over the next two years and allocate these savings to streaming content.
At the time, there were questions about where those funds might come from — the layoffs could be the start of that effort, though critics were quick to point to CEO David Zaslav’s high salary.
According to the normative documents of Zaslavo 2021 compensation package – which lasts until 2027. at the end of the year – jumped to a whopping 246 million
Earlier Wednesday, the studio confirmed that two HBO Max movies — “Batgirl,” starring “In The Heights” star Leslie Grace, and “Scoob!: Holiday Haunt” — had been pulled.
Warner Bros. did not immediately respond to Yahoo Finance’s request for comment on the layoff reports or its decision to drop the two films, but did provide a statement to its CNN affiliate.
“The decision not to release Batgirl reflects a strategic shift by our management regarding the DC universe and HBO Max,” a Warner Bros. spokesperson told the network.
“Leslie Grace is an incredibly talented actress and this decision is not a reflection of her performance,” the statement continued. “We are incredibly grateful for the Batgirl and Scoob! to the creators of Holiday Haunt and their respective actresses and we look forward to working with everyone again in the near future.”
The DC Comics movie was almost finished and cost the studio a reported 70-90 million to produce
The stock was up 4% at midday ahead of Thursday’s earnings results.