Warner Bros misses revenue target on  'The Flash' movie flop

Warner Bros' 'The Flash' underperformed at the box office.

Warner Bros Discovery missed market estimates for quarterly revenue as a number of high-profile flops at the box office, including The Flash, overshadowed rising momentum for its streaming business after the launch of Max.

The company forged by the union of WarnerMedia and Discovery reported second-quarter revenue of $10.36bn (€9.5bn). Media companies have been looking to strike the right balance between spending on content and boosting profitability. 

Its studio segment reported revenue of $2.58bn, missing analysts' estimates. In the quarter, films such as The Flash underperformed at the box office, and the company also incurred marketing costs for its Barbie film, which it released to huge box office success in July.

The direct-to-consumer unit posted revenue of $2.73bn, beating analysts' estimates. It lost 1.8 million subscribers, reporting 95.8 million total global subscribers for its HBO, Max and Discovery+ services. 

Warner Bros Discovery's new Max streaming service, launched during the quarter in the US, combined HBO Max's scripted entertainment with Discovery's reality shows.

In a call with investors, chief financial officer Gunnar Wiedenfels said he was confident the company would achieve $4bn in total synergies much sooner than previously thought, and sees a “clear path” to the company achieving $5bn or more in total synergies through 2024 and beyond. 

• Reuters