Cost savings are WBD’s top priority

Article Excerpt

WARNER BROS. DISCOVERY INC. $14 is a hold. The company (Nasadq symbol WBD; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 662.4 million; Market cap: $9.3 billion; Price-to-sales ratio: 0.7; No dividend paid; TSINetwork Rating: Average; www.wbd.com) is a leading producer of entertainment, sports and information programming. This content is available in 220 countries and 50 languages. The new firm’s top brands include Warner Bros. studio (TV shows and movies) and cable TV channels CNN, HBO, TNT, TBS, Cartoon Network, Discovery, HGTV, Food Network, TLC and Animal Planet. WBD expects its revenue will total $52 billion in 2023 compared to $45.53 billion in 2021. Of that 2023 total, $15 billion (29%) will come from streaming services. The company also expects the merger will let it cut $3 billion from its annual expenses. That should lift its gross earnings (before interest, taxes and depreciation charges) to $14 billion in 2023 from $10.85 billion in 2021. However, the stock will likely remain depressed while the company integrates the new businesses. Warner Bros. Discovery…

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