Sports might be a sore subject for Warner Bros. Discovery right now.
The company reported $11.01 billion in fourth-quarter revenue, falling short of analysts’ estimates of $11.36 billion.
The company’s TV networks segment, which includes Discovery, TNT, TBS, CNN, TLC, and Eurosport, fell 6% to around $5.5 billion, partially attributed to major sporting events taking place on other networks — including the men’s World Cup, NFL, and college football.
Advertising revenue fell 14%.
Warner Bros. Discovery posted a loss of $2.1 billion for the three months ending Dec. 31 and ended with $49.5 billion in gross debt.
In November, Warner Bros. Discovery Sports cut more than 10% of its workforce, affecting around 700 employees across Turner Sports, Bleacher Report, and the company’s studio operations.
An NBA Block
During the quarter — and a month after Turner Sports’ TNT extended contracts of all four members of TNT’s “Inside the NBA” — Warner Bros. Discovery CEO David Zaslav said the company will take a “disciplined” approach to NBA media negotiations, adding: “We don’t have to have the NBA.”
TNT currently has a deal with the league that runs through the 2024-25 season. Combined with ESPN, the deals total $24 billion.
Earlier this month, the NBA All-Star Game had its worst-ever viewership, with an average of 4.6 million viewers across TNT and TBS — a 27% year-over-year decline and a 22% drop from the previous low of 5.9 million in 2021.
