Warner Bros. Says It Will Take A Hit Of $300M - $500M To 2023 Earnings "Predominantly Due To Strikes"

Warner Bros. Says It Will Take A Hit Of $300M - $500M To 2023 Earnings "Predominantly Due To Strikes"

Warner Bros. Discovery has announced that it will take a substantial hit of between $300M and $500M by the end of the year, "predominantly due to the impact of the strikes.”

News
By MarkCassidy - Sep 05, 2023 08:09 AM EST
Filed Under: DC Studios
Source: Via THR

In a regulatory filing earlier today, Warner Bros. Discovery announced that it has lowered its 2023 adjusted earnings forecast to $10.5 billion-$11.0 billion, which means the studio will take a hit of between $300 million and $500 million.

This is said to be “predominantly due to the impact of the strikes,” but it really has been a year of ups and downs (more downs) for the studio.

While Greta Gerwig's Barbie performed exceptionally well (it's actually become Warner Bros.' highest-grossing movie of all time worldwide), DC Comics-based films Shazam! Fury of The Gods, The Flash, and Blue Beetle - which David Zaslav and co. had to be counting on to generate more revenue - underperformed, with the Scarlet Speedster's solo debut, in particular, emerging as one of the biggest flops in comic book movie history.

WBD previously predicted an end to the strikes in "early September," but with negotiations recently hitting a wall, no date has been set for the parties involved to return to the table.

“Uncertainty in the studio segment has increased with the dual strikes,” studio CFO Gunnar Wiedenfels said at the time. “This may have implications for the timing and performance of the remainder of the film slate as well as our ability to produce and deliver content. And while we are hoping for a fast resolution, our modeling assumes a return-to-work date in early September. Should the strikes run through the end of the year, I would expect several hundred million dollars of incremental upside to our free cash flow guidance and some incremental downside for adjusted EBITDA.”

In Tuesday's filing update, Wiedenfels was a lot less optimistic.

“While WBD 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.”

The Hollywood strikes have already resulted in several big and small-screen projects being delayed, including WB and Denis Villeneuve's Dune: Part 2, which was recently pushed back to 2024.

As far as (potential) blockbusters go for the remainder of the year, Aquaman and the Lost Kingdom is still set to arrive in theatres this December, but given the box office performance of other recent DC movies, we're not sure how confident the studio is in James Wan's sequel (we haven't seen so much as an official still or poster, let alone a teaser trailer).

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WhatIfRickJames
WhatIfRickJames - 9/5/2023, 8:37 AM
Too bad, so sad. Pay your writers and actors

Or maybe it’s because your tent pole shit the bed.
JDL
JDL - 9/5/2023, 8:24 PM
@WhatIfRickJames - They are. The writers want to be paid the same for less work and be part-owners as well.
BraveNewClunge
BraveNewClunge - 9/5/2023, 8:38 AM
Yes blame the strikes.....let's just forget about the flash, Shazam 2 and blue beetle tanking like a mf
BraveNewClunge
BraveNewClunge - 9/5/2023, 8:39 AM
** if all those DC films hit like Barbie did they'd be laughing!
dragon316
dragon316 - 9/5/2023, 2:24 PM
@TheClunges - antman three other marvel movies tv shows add list
CorndogBurglar
CorndogBurglar - 9/5/2023, 2:42 PM
@TheClunges - What's funny is Shazam 2 and The Flash lost a combined 300 million. That isn't even taking Blue Beetle into account yet because final numbers aren't in. But it's a safe bet that Blue Beetle will lose somewhere around 80-100 million.

So we're talking about losing $400 million dollars just from those 3 movies.

Latest numbers for Barbie show its earned WB somewhere close to 600 million. That's after budget, advertising, ticket sales, and splitting the ticket sales with the theatres.

So after those 4 movies, WB was in the positive overall with an earning of $200 million.

So if they are still down $400-$500 million, then it's coming from somewhere other than the overall performance of their films.

I'm not saying its from the strikes because I don't really know what other movies they had scheduled for this year. But if their 4 movies had them in the positive with 200 million, but they are claiming to be in the hole for 400-500 million, then SOMETHING caused them to lose an additional 600-700 million in total.

If they were in the positive by 200million, they would have to lose a total of 600-700 million for the year in order to be sitting at -400-500 million.

Lmao. That CANT all be from the strikes. Like you, I just don't believe that.
Tasmaniac
Tasmaniac - 9/5/2023, 8:41 AM
Well, thanks to the strike, that’s one less DC “Blockbuster” they’ll have to make to achieve the same result.
slickrickdesigns
slickrickdesigns - 9/5/2023, 8:42 AM
I’m sure all the failed DC films had nothing to do with their losses. What happened to that Barbenhiemer moneys?
BritishMonkey
BritishMonkey - 9/5/2023, 8:42 AM
Oh no. If only there was some way to quickly and easily resolve this. Like paying your [frick]ing crew.
theprophet
theprophet - 9/5/2023, 1:06 PM
@Origame - that deal actually doesn't sound bad at all....11k a week guaranteed 10 weeks that's over 110k some people don't even make that a year
dragon316
dragon316 - 9/5/2023, 2:26 PM
@theprophet - some less than some people working at average jobs don’t make that in year it’s layers doctors maybe police firefights mayors who make that in year people working for city post office city crews
Origame
Origame - 9/5/2023, 2:47 PM
@theprophet - exactly. And it was $9,000 a week before the strike. These are the "starving artists" people here are defending.
CorndogBurglar
CorndogBurglar - 9/5/2023, 2:47 PM
@theprophet - "SOME" people don't even make that a year? Do you realize the average household income is about $60,000 a year? That's a household. Meaning in most cases that's 2 or more people's salaries making up that $60,000.

110K is more than doubling the income of the vast majority of the people in America.
Deadinside
Deadinside - 9/6/2023, 9:44 AM
@CorndogBurglar - I make about half of that & now, they are wanting to outsource my job to somewhere overseas so they can pay even less!
🤷‍♂️☮
Evansly
Evansly - 9/5/2023, 8:48 AM
Writers want an estimated $429m spread between all studios.

Like others have posted, they are using this as an excuse for their terrible showing at the box office but regardless it seems the strikes are very effective on these studios and the more they dig their heels the more they will lose.

Pay your people properly, I don't care if it's the film industry, teachers, construction, everyone should have a living wage.
Origame
Origame - 9/5/2023, 11:00 AM
@Evansly - if 9,000 a week isn't liveable it's because you're terrible with money.
Evansly
Evansly - 9/5/2023, 12:20 PM
@Origame - Right... I don't think anyone would disagree with this. However, there are many people making below a livable wage and that is the issue.

Not really sure where you were attempting to derail my comment to but enjoy your day.
Origame
Origame - 9/5/2023, 2:43 PM
@Evansly - except $9,000 a week is liveable. The problem is they don't work most of the year. Which is the price you pay with commission work when there's too many workers and not enough work.

You wouldn't be expected to cover an Uber driver just because they can't get driving jobs throughout the year, would you?
Deadinside
Deadinside - 9/6/2023, 9:50 AM
@Origame - "if 9,000 a week isn't liveable it's because you're terrible with money."

And, here I am trying to survive on $450 a week!
🤷‍♂️☮
Origame
Origame - 9/6/2023, 11:00 AM
@Deadinside - exactly. This isn't people fighting to make ends meet. These are greedy a holes who want a payout despite not working a full year.

If you make this money but only work like 3 weeks a year, you still have 49 weeks in the year to find other work.
Mykull
Mykull - 9/5/2023, 8:57 AM
Well, help end the strike. Pay those people.
cham2119
cham2119 - 9/5/2023, 9:02 AM
Love the support I’m seeing for labor in these comments it’s refreshing
SATW42
SATW42 - 9/5/2023, 9:08 AM
@cham2119 - on this particular post, that or you have certain posters blocked. We have a number of bootlickers supporting the studios here.
Origame
Origame - 9/5/2023, 11:02 AM
@cham2119 - didn't you tell everyone they suck and you didn't need their support?

Also, you claimed to be a part of two separate unions in the past, one being the writers strike and before that with the crews who aren't even striking now.
cham2119
cham2119 - 9/5/2023, 11:21 AM
@SATW42 - On this particular post Oh I know there be some bootlickers out there Origame is already out here lol
cham2119
cham2119 - 9/5/2023, 11:22 AM
@Origame - LOL You definitely need to learn read but thank you for this you always make my day with your stupidity how those reruns treating you?
Origame
Origame - 9/5/2023, 11:39 AM
@cham2119 - literally the first time I came across you, I pointed out how the wga was screwing over the crew of daredevil by preventing them from work. You said "don't speak for us" and claimed to be part of that union.

Now you're claiming to be part of the wga.

So which is it?

Also, I've been sticking to YouTube and my gaming collection my dude. Starfield comes out tomorrow and spiderman 2 next month. I'm good for the long haul.
SATW42
SATW42 - 9/5/2023, 11:42 AM
@cham2119 - lol, I blocked him but just saw his responses because I checked out the site logged out. Glad to see he hasn't changed.
cham2119
cham2119 - 9/5/2023, 12:28 PM
@Origame - where did i claim to be part of the wga? My lord your parents and teachers failed you when it came to literacy huh. Hope your parents have safe search on for you some of those kids channels are [frick]ed up on youtube lol
cham2119
cham2119 - 9/5/2023, 12:28 PM
@SATW42 - lol he sure hasn’t
cham2119
cham2119 - 9/5/2023, 12:38 PM
@Origame - oh by the way you do know you can be apart of more than one union right genius? Can’t believe I almost forgot to point that out. Man what’s it like to keep playing yourself 🤣🤣🤣🤣
Origame
Origame - 9/5/2023, 2:44 PM
@cham2119 - you literally said if I watch anything before 2007 odds are you wrote it. If you're that involved in the industry it's basically guaranteed you're in the wga (at least by your claim).
Origame
Origame - 9/5/2023, 2:45 PM
@cham2119 - oh so now you're giving yourself a way out for lying about this?

Dude, if you're in the writers union, there's no way you're also in the camera crew union.
cham2119
cham2119 - 9/5/2023, 4:17 PM
@Origame - said odds are i worked on it damn you really do need to learn how toread also did you know that jason bateman is in two hollywood unions? Chris nolan is in two his director of photography is in three including the camera union. The director of jon wick is in three you are quite the idiot also when did i say iwas in the camera union? Man does it hurt being that dumb?🤣🤣
cham2119
cham2119 - 9/5/2023, 4:26 PM
@Origame - here’s the quote you are looking for dipshit try and read it very slow

What we are doing is fighting for those that get little to nothing and trust me if it was made in America in the last twenty years there's a good chance I worked on it lol so have fun dropping your watch list to anything before 2007 🤣

So where did i say I wrote anything? Also where did i say i was in the camera union?
Origame
Origame - 9/5/2023, 4:48 PM
@cham2119 - dude, the point still stands. There's no way you've been involved in so much in Hollywood that it's basically guaranteed I've seen something you've written if it's before 2007 if you aren't in the wga.

As for the choices you made, none of them are writers going into camera work. They're either primarily directors stepping into other fields because they're that controlling with their projects or like Bateman taking a natural career path into directing.

Ain't no way a writer is going into camera work. Are you seriously claiming to be in both unions?
Origame
Origame - 9/5/2023, 4:49 PM
@cham2119 - well in that thread you had a full tirade using us for the wga.
Origame
Origame - 9/5/2023, 4:49 PM
@cham2119 - and come on dude. Just say what union you're in already.
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