Warner Bros Discovery (NASDAQ:) lowered its full-year outlook to reflect the ongoing strikes by Hollywood writers and actors.
The previous guidance was based on the assumption that the strikes would be resolved by early September. The company now assumes the financial impact to WBD of these strikes will persist through the end of 2023.
More precisely, WBD is expecting lower adjusted EBITDA for the full year in the range of $10.5 billion to $11 billion, reflecting the assumption that adjusted EBITDA will be negatively impacted by approximately $300-$500 million.
On the other hand, the company raised its free cash flow expectations for the full year to at least $5 billion.
“The Company now expects to exceed $1.7 billion 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 factor,” WBD said.
WBD shares fell 1% on the news.