Warner Bros. Discovery has changed its outlook for the year 2023 due to the ongoing writers' and actors' strikes, which have caused production to halt.It is anticipated that the company will suffer a loss of somewhere between $300 million and $500 million.Warner Bros. Discovery, an owner of a television and movie studio, believes the financial consequences of this situation will be felt until the end of the current year.
Warner Bros. Discovery has informed investors that it has adjusted its outlook in the event of the strikes by actors and writers continuing into the end of the year. This is not a prediction, but the company stated in a securities filing that earnings before interest, taxes, depreciation, and amortization could be affected by up to $500 million, putting their estimate for the full year at $10.5 billion to $11 billion. Since they are the owners of the largest portfolio of pay TV networks, as well as movie and TV studios, the financial implications of the strikes have become increasingly pertinent. In addition to the financial damage, the "Dune: Part Two" release has been forced to push back its date to 2024, and the "Barbie" movie has become the top-grossing release for Warner Bros. The Chief Financial Officer has noted that if the strikes are to run through the end of 2020, their adjusted EBITDA and cash flow guidance will be affected. Warner Bros. Discovery CEO David Zaslav will speak more on the situation at Goldman Sachs' Communacopia + Technology conference on Wednesday.
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