The financial impact of ongoing actors and writers strikes as a number on it now as Warner Bros. Discovery said today it’s looking at a hit of $300 million to $500 million in adjusted EBTITDA (earnings before interest, taxes, depreciation and amortization) for 2023.
In a filing with the SEC today, WBD said “it is expecting lower adjusted EBITDA for the full year in the range of $10.5 to $11 billion, reflecting the company’s assumption that adjusted EBITDA will be negatively impacted by approximately $300 to $500 million, predominantly due to the impact of the strikes.”
Free cash flow goes the other direction. The company raised its free cash flow expectations for the full year to at least $5 billion. It 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 factors.
The company said in the SEC filing it will continue to update its assumptions “based on the timing and any additional impacts of the eventual resolution of the strikes.”
More to come…
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