  warner bros discovery reported downbeat earnings across the board for the second quarter   however the company’s short and longterm work on reducing its 50 million debt has impressed wall street   warner bros discovery shares were up as high as 3 at the news warner bros discovery has made a lot of headlines lately with rumored layoffs and restructuring its advertising business the ongoing writers’ and actors’ strike and merging its streaming services plenty could have rocked the financial boat for the second quarter the company suffered losses but the way it’s handling the substantial debt since the merger last year sent the share price upwards instead of sliding let’s look at the gritty details and how warner bros discovery plans to turn the ship around despite of the headwinds it faces earnings season can make individual stock volatility feel like a rollercoaster ride but why ride solo when you can have ai as your copilot qais foundation kits are your goto for diversified themed investments covering sectors from tech to global trends they’re like an investment picnic giving you the edge without the nailbiting the secret ingredient a nifty ai that dives into the data predicts the frontrunners in assets and adjusts the kits composition as needed its all about helping you keep on track and supercharging your investment potential what do warner bros discovery’s q2 earnings look like the film and tv titan warner bros discovery made more losses in the second quarter earnings per share arrived at a loss of 51 cents surpassing analyst expectations of a 38 cents per share loss revenue was also down reported at 1036 billion versus the 1044 billion anticipated and 4 lower than last year when considering the merger and foreign currency impact the total net loss was 124 billion but this significantly improved from last year’s dismal q2 result of a 342 billion net loss and 150 losses per share the studios were a big reason for the revenue drop as revenue declined 8 to 258 billion due to underperforming movies like the flash though this likely won’t be the case in the third quarter with the smashhit barbie film warner bros discovery is also a big player in the streaming service world but streaming subscriber numbers also disappointed global directtoconsumer streaming subscribers were at 958 million coming in below analyst estimations of 967 million during q2 warner bros discovery merged its discovery and hbo max services to create max which could be partially to blame for the drop in subscribers streaming was profitable for the first time in q1 for warner bros discovery but the second quarter left investors cold the segment recorded a 3 million loss what was said about the writers strike regarding the actors and writers’ strike that has left hollywood at a standstill for months ceo david zaslav took a conciliatory tone during the earnings call he said that given warner bros discovery is “in the business of storytelling” the company “cannot do that without the entirety of the creative community the great creative community without the writers directors editors producers actors the whole belowtheline crew” a disappointing earnings beat from warner bros discovery might give sagaftra the biggest actors and writers union some leverage hollywood is striking over pay conditions with many of the union’s members unable to qualify for healthcare benefits as well as growing concern over the use of ai in the industry so far neither side has budged though the strikers got some fresh motivation at the news last week that streaming giants like netflix  amazon prime and sony are paying hundreds of thousands of dollars for ai experts the netflix role had a salary range of up to 900000 which comedian rob delaney wryly pointed out could give a living wage to 35 actors and provide healthcare for them and their families the financial figures paired with striking workers should leave investors concerned moody’s predicts the studios renegotiating contracts could cost them between 450 million to 600 million per year for the next three years how is warner bros discovery handling its debt since discovery’s acquisition of warner bros was finalized last year the merged company has been making strides towards reducing the massive 50 billion debt it amassed one of the costcutting measures has been layoffs with several key executives departing the company and job losses affecting the tv studios adult swim the discovery channel and tlc among others rumors are now swirling of rolling job cuts throughout the summer as of the second quarter it’s paid off 16 billion in debt and is looking to pay off 27 billion more with a cash tender offer warner bros discovery ended the second quarter with 478 billion left to pay but increased its free cash flow to 17 billion it’s been previously stated that warner bros discovery is looking to lower its debttoebitda ratio to below four times with any spare cash going towards paying the debt off one of those moneymaking avenues is licensing out its content which generated 410 million in the second quarter alone triple the amount from q2 last year advertising is a trickier problem to solve given the pullback in spending due to high inflation and higher interest rates ad revenue for the networks was flat for the second quarter with zaslav calling the sustained drought in advertising “unusual” and that “a lot of us expected that there would be a meaningful recovery in the second half of the year and we haven’t seen it” warner bros discovery has to hope its new adsupported tier for the max streaming service will do the trick though early signs are promising  ad revenue was up 25 for the quarter on a pro forma combined basis despite the earnings beat showing more losses the headway warner bros discovery made with its towering debt was enough to convince wall street about its longterm profitability warner bros discovery shares climbed as much as 3 at the news with the stock having already gained 35 this year compared to its peers’ stock performance warner bros discovery is in the middle of the pack netflix’s share price climbed 46 in 2023 but disney undergoing a mammoth 55 billion restructuring effort has lost 39 warner bros discovery got off lightly because investor expectations were already that the media conglomerate would have losses but given the substantial effort it’s put in to get things back on track that was enough to keep wall street reassured that there’s a silver lining at the end of the tunnel for warner bros discovery curveballs like striking writers have left the media industry in flux which shows the importance of diversifying your portfolio across different assets and industries qais foundation kits cover a gamut of areas from tech to global trends they bring variety to your investment plate and help to keep you ahead of the curve without the stress ai does the heavy lifting analyzing data predicting the potential highflyers and readjusting the kits 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