Warner Bros Discovery anticipates the Hollywood writers’ and actors’ strikes will have a $300m-$500m negative impact on the company’s 2023 earnings.
In an SEC filing (financial statement submitted to the US Securities and Exchange Commission) today (September 5), the company stated it was ”expecting lower adjusted EBITDA for the full year in the range of $10.5bn to $11bn, reflecting the company’s assumption that adjusted EBITDA will be negatively impacted by approximately $300 to $500m, predominantly due to the impact of the strikes.”
The filing added: “While WBD [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 WBD of these strikes will persist through the end of 2023.”
On an August 3 earnings call, the company said it was assuming the strikes would be over by early September.
Warner Bros pushed much anticipated sequel Dune: Part Two back from its November 3 release date to March next year, in light of the strikes.
The company is raising free cash flow expectations for the full year to at least $5bn, and expects to exceed $1.7bn in free cash flow for the third quarter of 2023, in part due to the strong performance of Barbie as well as incremental impact from strike-related factors.
The filing noted: “WBD continues to prioritise and work diligently with other industry leadership to resolve the current WGA and SAG-AFTRA strikes in a manner that is fair and values the important work of, and partnership with, the writers and actors.”
It also continues “to update its assumptions based on the timing and any additional impacts of the eventual resolution of the strikes”.
CEO David Zaslav is participating in an investor conference on September 6, in which he is expected to discuss the ongoing WGA and SAG-AFTRA strikes.
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