Warner Bros' misses revenue targets on soft ad sales, weak box-office
Warner Bros Discovery missed Q2 revenue estimates as weak box office and the loss of NBA broadcasts hit studio and advertising sales despite optimism over its Paramount deal
 "Warner Bros' misses revenue targets on soft ad sales, weak box-office")
Warner Bros Discovery missed second-quarter revenue expectations on Thursday, hurt by lackluster box-office performance and soft advertising sales due to the absence of National Basketball Association (NBA) games.
Studio revenue slumped 39 per cent, with releases including Mortal Kombat ??II and Supergirl failing to replicate the blockbuster success of last year’s top grosser A Minecraft Movie and Sinners.
Warner’s film slate is weighted toward the second half of the year, with major releases such as Digger and Dune: Part Three expected to boost box-office performance.
Britain’s Competition and Markets Authority cleared Warner’s $110 billion merger with Paramount on Thursday saying it was unlikely to harm competition in the country.
Still, the merger remains tied up in court, with California and 11 other states in the US seeking to block it on antitrust grounds.
Paramount has agreed to pause the deal until June 2027, while a federal trial is set for March 2027. Speaking on a post-earnings call, the CEOs of both the companies expressed confidence that the deal would be completed.
The absence of the NBA games broadcasts this year, coupled with declines in domestic linear TV audiences, drove a 22 per cent drop in advertising revenue for Warner Bros during the second quarter.
Higher energy prices linked to conflicts in Iran and Ukraine weighed on international advertiser spending.