Warner Bros. Discovery trimmed its full-year earnings guidance for 2023 on Tuesday by $300 million to $500 million because of the continued strike by actors and writers, which has stopped production of most shows and movies.
The corporate parent of CNN had previously told investors that it expected the strike to be over by early September. But WBD now says it cannot predict when the strike will ultimately end, and it assumes the impact will continue through the rest of this year.
“WBD is hopeful that these strikes will be resolved soon,” said a filing the company made with the Securities and Exchange Commission with its new guidance early Tuesday.
Shares of WBD were up more than 1% in early trading following the filing.
Cash flow is expected to be somewhat higher than previously expected due to a combination of money saved from the lack of film and show production and continued strong box office from its hit movie “Barbie.” The film has reported global ticket sales of $1.4 billion, through this past weekend, according to Comscore, making it the biggest box office movie of the year.
Other companies that are being struck include Apple, Amazon, CBS, Disney, NBC Universal, Netflix, Paramount Global and Sony.
