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Market Daily Report: Bursa Malaysia Gives Up Earlier Gains To End Mixed

KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
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Warner Bros. Discovery Stock Plummets Amid $9.1 Billion Write-Down and Missed Revenue Estimates



Key Points:

  • Warner Bros. Discovery reported second-quarter earnings after the bell, including a significant $9.1 billion non-cash goodwill impairment charge on its TV networks business.
  • The company missed analyst expectations for quarterly revenue, resulting in a stock drop of roughly 9% in aftermarket trading.

Financial Performance:

  • Loss per share: 36 cents vs. a loss of 22 cents expected.
  • Revenue: $9.7 billion vs. $10.07 billion expected.

The impairment charge stemmed from a reevaluation of the TV networks segment's book value, which was higher than the market value as traditional TV networks face declining viewership and advertisers shift to digital and streaming platforms.

Executive Commentary:

  • CFO Gunnar Wiedenfels acknowledged the magnitude of the impairment but emphasized the shift in value across business models.
  • CEO David Zaslav noted that the impairment aligns carrying values with future outlooks, reflecting changing market conditions for legacy media companies.

Debt and Financial Strategy:

  • Warner Bros. Discovery continues to prioritize debt reduction, paying down $1.8 billion in debt during the second quarter. As of June 30, the company had $41.4 billion in gross debt and $3.6 billion in cash.

Challenges and Opportunities:

  • TV Networks: Revenue for TV networks fell 8% to $5.27 billion, with declines in both distribution and advertising revenue.
  • Streaming Business: The streaming platform Max added 3.6 million subscribers in the quarter, bringing the total to 103.3 million global subscribers. Despite a 5% drop in direct-to-consumer streaming revenue, advertising revenue for streaming increased by 99%, driven by higher domestic engagement and ad-supported subscriber growth.

Future Outlook:

  • Warner Bros. Discovery is forming streaming bundles with Disney's Disney+ and Hulu, and a sports bundle with Disney’s ESPN and Fox set to launch this fall.
  • The company expects continued growth and profitability in its streaming business, driven by international expansion and increased ad spending.

Summary: Warner Bros. Discovery faced a challenging quarter with a significant write-down and missed revenue expectations, leading to a sharp decline in its stock price. However, the company remains focused on strategic debt reduction and growth in its streaming business, positioning itself for future profitability amid a shifting media landscape.

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