Warner Bros. Discovery Inc. tumbled the most in more than a year after the entertainment giant reported a significant decline in network advertising as a result of the Hollywood strikes and the ongoing bleeding of traditional TV subscribers.
Advertising revenue in the networks division fell 12% to $1.7 billion in the third quarter, the company reported Wednesday. The hit weighed on profitability and led to a loss of 17 cents a share in the three months ended in September, missing Wall Street estimates of an 8.6-cent loss, according to data compiled by Bloomberg.
The shares fell as much as 15% to $9.82 as trading opened in New York on Wednesday, the biggest intraday decline since August 2022. They had gained 22% this year through Tuesday’s market close.