\n<\/p>\n
\n\tWarner Bros. Discovery posted a whopping $2.9 billion first quarter loss that will likely be a one-time accounting blip, it hopes, since it includes the $2.8 billion termination fee that Paramount paid Netflix to swap places on the merger board.<\/p>\n
\n\tWBD said the \u201camount is refundable to PSKY in certain circumstances, such as the termination of the PSKY merger agreement by WBD for a superior proposal or the violation of interim operating covenants, resulting in an obligation for WBD.\u201d<\/p>\n
\n\tAccording to Paramount CEO David Ellison earlier this week, however, the Par-WBD deal is on track to close in the third quarter. <\/p>\n
\n\tBeyond that, streaming led by HBO Max had a nice quarter with revenue up 7% to about $2.9 billion on some popular prgramming and as it chugged into global markets. DTC ad revenue rose 19%. Profit jumped 17% to $433 million. <\/p>\n
\n\tAt Studios, sales and profit surged led by theatrical as well as content licensing as HBO Max expanded.<\/p>\n
\n\tAdjusted ebitda, a metric Wall Street likes follow, was flat at $2.2 billion with growth in streaming and studios offset by the ongoing decline at global linear networks, where revenue fell 9% to $4.4 billion and profit dipped 10% to $1.6 billion. Linear advertising dropped 12% driven by the absence of the NBA.<\/p>\n
\n\tThe company ended the March quarter with a still hefty $33.4 billion in gross debt.<\/p>\n
\n\tFree cash flow turned negative to the tune of $208 million from a positive $553 million the year before in part on $100 million of separation and transaction-related cash costs<\/p>\n
\n\tWBD\u2019s total revenue eased 3% to $8.9 billion. Net losses ballooned from $453 million.<\/p>\n
\n\tExecutives will host a call with analysts at 4:30 ET.<\/p>\n