ByThe Associated Press
September 5, 2023, 9:49 AM
Warner Bros. Discovery is cutting one of its full-year earnings forecasts, saying it will likely incur $300 million to $500 million in costs due to the ongoing Hollywood writers and actors’ strikes.
The U.S. film and television industries remain paralyzed by dual strikes by its actors and screenwriters. The writers strike began in May and the actors joined them on July 14.
The company said in a regulatory filing that it now expects 2023 adjusted earnings before interest, taxes, depreciation and amortization to be between $10.5 billion to $11 billion, due to the anticipated strike-related costs. It previously predicted its adjusted EBITDA would be at the low end of a range of $11 billion to $11.5 billion.
“While (Warner Bros. Discovery) is hopeful that these strikes will be resolved soon, it cannot predict when the strikes will ultimately end. With both guilds still on strike today, the company now assumes the financial impact to (Warner Bros. Discovery) of these strikes will persist through the end of 2023,” the company stated.
In early trading, Warner Bros. stock added 20 cents to $11.76.