(Reuters) -Warner Bros. Discovery reported an 8% drop in quarterly revenue on Thursday, 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 and Warner Bros peers Paramount Global and Comcast Corp to warn about a continuing weakness in the advertising landscape.
The company, home to hit franchises such as “Batman” and “Euphoria”, added 2.8 million new streaming subscribers in the third quarter, bringing its total count 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 to come in at $10.37 billion, according to Refinitiv data.
The company said adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) was down 8% to $2.42 billion in the third quarter.
(Reporting by Chavi Mehta in Bengaluru; Editing by Anil D’Silva)
