Warner Bros. Discovery reported its second-quarter 2024 earnings Wednesday, which included a $9.1 billion charge related to the devaluation of the companies TV networks, and an overall $11.
2 billion hit to the company’s balance sheet. The $9.1 billion goodwill impairment charge, which is a non-cash, pre-tax figure, comes after an asset reevaluation that accounted for the difference between the “fair value” and “book value” of the networks, which have changed due to continued softness in U.
S. linear ad market and uncertainty around affiliate and sports rights renewals, including the NBA , two years after the close of WarnerMedia and Discovery’s merger. These linear networks include Food Network, HGTV, Discovery, CNN, TNT, TBS and Cartoon Network/Adult Swim, among others.
The additional $2.1 billion charge was “pre-tax acquisition-related amortization of intangibles, content fair value step-up, and restructuring expenses,” per WBD. The David Zaslav-led company’s net loss for the quarter was $10 billion.
Warner Bros. Discovery reported a loss of $107 million for its direct-to-consumer segment in Q2. But there was some good news for its streaming business: The April 1-June 30 period concluded with WBD’s HBO , Max and Discovery+ boasting a total of 103.
3 million global subscribers following an addition of 3.6 million during the quarter. Warner Bros.
Discovery attributed a large portion of that growth to the international relaunches of Max (the combined and rebr.