Media empire Warner Bros. Discovery has revised its annual profit projections to a range of $300 million to $500 million, largely due to the impact of strikes by the screenwriters’ and actors’ unions in the United States. These strikes have been unleashed as a protest against the giant entertainment companies.
Initially, the company planned to reach an EBITDA (financial indicator before taxes, interest, depreciation and amortization) that would oscillate between 11,000 and 11,500 million dollars by the year 2023. However, in the latest update issued by Warner Bros. This Tuesday, this range has been adjusted to between 10,500 and 11,000 million dollars.
“Despite Warner Bros. Discovery’s confidence in an early resolution of these strikes, we cannot anticipate their end date. With both unions still on strike today, the company estimates the financial impact will persist through the end of 2023“, stated the company in its statement updating expectations for this year.
Notwithstanding these challenges, the blockbuster movie “Barbie,” which has grossed a staggering $1.4 billion worldwide, along with a decline in investment in movie and show production, is expected to increase the flow of free cash to a minimum of $5 billion, according to the report presented by Warner Bros. Discovery.
The company also reiterated its commitment to fairly resolve the strikes led by the Hollywood Actors Guild (SAG-AFTRA) and the Writers Guild (WGA), noting that it will adjust its projections should these strikes come to a head. end.
SAG-AFTRA joined the protests launched by the WGA on July 14 in their joint fight against the Alliance of American Motion Picture and Television Producers (AMPTP), in a strike that has paralyzed the American entertainment industry and that, so far, it shows little sign of resolution.
All this panorama of uncertainty is added to the massive layoffs carried out by large entertainment companies, including Warner Bros. Discovery, which cut 7,000 jobs at the end of May as part of its strategy to restore financial balance.
K. Tovar
Source: Bancaynegocios
(Reference image source: Christian Joudrey, Unsplash)
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