Warner Bros Discovery's financial loss saw an increase between $300 million-$500 million. This is after the studio company revised its 2023 earnings forecast due to the ongoing strikes in Hollywood. The said adjustment lowers the expected earnings before interest, taxes, depreciation, and amortization (EBITDA).

Now, Warner Bros Discovery's loss would mean earnings of $10.5 billion-$11.0 billion, compared to the initial target of $11.0 billion-$11.5 billion.

WB's CEO David Zaslav was actively involved in strike negotiations. But he did not specify when the strikes might end but had previously suggested an early September resolution.

Due to increased uncertainty caused by the strikes, Warner Bros Discovery's nine-figure financial loss will continue through the end of 2023.

At present, the studio company is also anticipating lower adjusted EBITDA for the full year. This means it could range between $10.5 billion and $11 billion, primarily due to strike-related impacts.

On a positive note, the company raised its full-year free cash flow expectations to at least $5 billion. Reports reveal that the third quarter may exceed $1.7 billion in free cash flow due to the massive success of Barbie at the box office.

CEO Zaslav and other industry leaders will discuss these developments at a Goldman Sachs investor conference in San Francisco. But despite the major loss, WB claims commitment to resolving the strikes fairly. All while also cknowledging writers and actors in the industry.

Warner Bros Discovery's main takeaway for the financial loss is achieving net leverage below 4.0x by the end of 2023 and a target gross leverage range of 2.5x-3.0x by the end of 2024. All are subject to updates based on strike resolution.