Warner Bros Discovery reports third-quarter loss of $2.3 billion

(Reuters) -Warner Bros Discovery (NASDAQ:) posted a quarterly loss on Thursday, reflecting ongoing restructuring costs, even as the debut of HBO’s fantasy series “House of the Dragon” marked the most-watched series premiere in the network’s history.

It posted a loss of $2.3 billion, or 95 cents a share, in the third quarter, a figure that includes $1.5 billion in pre-tax restructuring charges.

The company reported an 8% drop in quarterly revenue, hurt by cuts in advertising budgets at businesses struggling to cope with decades-high inflation.

Recession-wary brands have taken the axe to their marketing budgets as consumer spending on discretionary products and services dip.

The wider rout in the ad market has led companies including Google-parent Alphabet (NASDAQ:) and Warner Bros peers Paramount Global and Comcast Corp (NASDAQ:) to warn about continuing weakness in the advertising landscape.

Warner Bros Discovery, home to hit franchises such as “Batman” and “Euphoria”, added 2.8 million new streaming subscribers in the third quarter, bringing its total to 94.9 million. It aims to reach about 130 million global subscribers by 2025.

Revenue was $9.82 billion for the third quarter ended Sept. 30. Analysts on average expected revenue of $10.37 billion, according to Refinitiv data.

The company said adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) were down 8% to $2.42 billion in the third quarter.

Warner Bros Discovery stock fell 2% in after-hours trading.

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