Warner Bros. Discovery misses fourth-quarter revenue estimates

Investing.com -- Warner Bros. Discovery (NASDAQ:WBD) has reported fourth-quarter revenue that was below average analyst forecasts, but the media group said it is now on a "clear pathway" to growth.

Like other industry players, the company has been facing an ongoing shift away from traditional television towards streaming options.

But Chief Executive David Zaslav said in a statement on Friday that Warner Bros. Discovery is now on "solid footing" after a push to focus on its direct-to-consumer offerings, adding that it has an "attack plan" to roll out its Max streaming service in key international markets and create a "more robust" pipeline of releases from its studios division.

"[We] are confident in our ability to drive sustained operating momentum and enhanced shareholder value," Zaslav said.

Advertising revenues at Warner Bros Discovery's networks segment, which includes channels such as CNN and TBS, fell by 14% excluding foreign exchange impacts in the three months ended on Dec. 31 -- a trend that the company said reflected declining audiences and "soft" linear U.S. ad markets. However, this was partly offset by greater user engagement with Max, which helped lift advertising revenues at its direct-to-consumer segment by 51%.

Total revenue dipped by 7% to $10.28 billion, missing Wall Street estimates of $10.46 billion, while its net loss narrowed to $400 million.

Shares in the firm were marginally lower in premarket U.S. trade.