Warner Bros. Discovery is looking to lose up to $500 million in 2023 due to the actors and writers strikes.
According to Deadline, Warner Bros. Discovery said on September 5, 2023, that the company is looking to lose approximately $300-$500 million in EBITDA (earnings before interest, taxes, depreciation, and amortization) because of the ongoing writers and actors strikes.
“[The company] 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,” Warner Bros. Discovery said in a filing with the Securities and Exchange Commission.
Contrarily, Warner Bros. Discovery’s projections for free cash flow in 2023 have been raised to $5 billion, largely because of Barbie’s record-breaking box office numbers. The film has not yet completed its theatrical run but has already made approximately $1.384 billion at the worldwide box office.
Writers have been on strike since May 2023
The Writers Guild of America (WGA) went on strike on May 2, 2023, followed by the Screen Actors Guild – American Federation of Television and Radio Artists (SAG-AFTRA) on July 14, 2023. The strikes are lobbying for fair pay, protection against artificial intelligence, and more.
Warner Bros. Discovery indicated they initially hypothesized the strikes would be resolved by early September, hence the change in projected finances. Given there is currently no end in sight to the strikes, the company could end up losing even more in adjusted EBITDA should they continue throughout the rest of the year.
David Zaslav, CEO of Warner Bros. Discovery, said the company will continue to update its projections as 2023 continues. “WBD continues to prioritize and work diligently with other industry leadership to resolve the current WGA and SAG-AFTRA strikes in a manner that is fair and values the important work of, and partnership with, the writers and actors,” he said.
