American media company Warner Bros. Discovery, which was created from the merger of WarnerMedia, a media division of AT&T Inc., with Discovery Inc., posted a net loss in the second quarter, with revenue significantly worse than expected.
The company’s net loss in April-June amounted to $3.418 billion, or $1.5 per share, compared with a net profit of $672 million, or $1.01 per share, recorded for the same period last year.
Revenue soared to $9.827 billion from $3.062 billion a year earlier.
Analysts polled by FactSet had forecast, on average, that the company would make a profit of 12 cents per share on revenue of $11.83 billion.
The number of subscribers to the streaming service Warner Bros. Discovery hit 92.1 million, up from 90.4 million three months earlier.
Chief Executive Officer David Zaslav, in a teleconference that lasted more than an hour and a half, said that Warner Bros. Discovery is exploring the possibility of launching a free streaming service that will be powered by ads to attract more customers to the platform.
Quotes of the company’s shares in additional trading on Thursday fell by 11.6% after the publication of financial statements. The company’s market value has fallen 1.5% over the past three months (to $40.55 billion), while the Nasdaq Composite stock index has increased by 3.3%.