Warner Bros earnings hit despite 'Barbie' box office success

Analysts say the market is not thrilled with Warner's financial loss following the huge success of 'Barbie'.

Box office smash Barbie helped Warner Bros Discovery top core quarterly profit estimates but the effects of two Hollywood strikes and a weak advertising market could hamper earnings into next year, company executives said. The dour outlook sent the company's shares tumbling over 14% at one stage.

Although Hollywood's film and television writers ratified a new three-year contract in September, ending their 148-day work stoppage, members of the SAG-AFTRA actors union have been on strike since July, upending the industry's 2024 film production schedule and depriving media companies of new content to sell.