The monetary impression of ongoing actors and writers strikes as a quantity on it now as Warner Bros. Discovery mentioned in the present day it’s a success of $300 million to $500 million in adjusted EBTITDA (earnings earlier than curiosity, taxes, depreciation and amortization) for 2023.
In a submitting with the SEC in the present day, WBD mentioned “it’s anticipating decrease adjusted EBITDA for the complete 12 months within the vary of $10.5 to $11 billion, reflecting the corporate’s assumption that adjusted EBITDA will probably be negatively impacted by roughly $300 to $500 million, predominantly as a result of impression of the strikes.”
Free money stream goes the opposite path. The firm raised its free money stream expectations for the complete 12 months to no less than $5 billion. It expects to exceed $1.7 billion in free money stream for the third quarter of 2023, partially as a result of sturdy efficiency of Barbie in addition to incremental impression from strike-related components.
The firm mentioned within the SEC submitting it should proceed to replace its assumptions “based mostly on the timing and any extra impacts of the eventual decision of the strikes.”
More to come back…