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Warner Bros. Discovery Lowers 2023 EBITDA Forecast Amid Writers and Actors Strikes

Warner Bros. Discovery CEO David Zaslav has announced that the company is lowering its 2023 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast due to ongoing strikes by writers and actors in Hollywood. The forecast has been revised from the low end of $11.0 billion-$11.5 billion range to $10.5 billion-$11.0 billion.

The strikes, which have led to production delays and halted filming of various movies and TV shows, have negatively impacted the company’s financial outlook. Warner Bros. Discovery is currently engaged in discussions with Hollywood unions to end the work stoppage, but the exact timeline for the resolution of the strikes remains uncertain.

Despite the challenging situation, Warner Bros. Discovery is optimistic about resolving the strikes soon. However, in a regulatory filing, the company stated that it cannot predict when the strikes will ultimately end. As a result, the financial impact of the strikes is now expected to persist through the end of 2023.

Warner Bros. Discovery’s revised full-year 2023 guidance includes lower adjusted EBITDA in the range of $10.5-$11 billion. The company estimates that the strikes will negatively impact adjusted EBITDA by approximately $300 million-$500 million.

On a positive note, Warner Bros. Discovery raised its free cash flow expectations for the full year to at least $5 billion. The company also anticipates exceeding $1.7 billion in free cash flow for the third quarter of 2023, partly due to the strong performance of the movie Barbie and additional factors related to the strikes.

Despite the challenges posed by the strikes, Warner Bros. Discovery is confident in achieving its long-term financial targets. The company maintains its expectation of 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.

Warner Bros. Discovery will continue to update its assumptions based on the timing and any additional impacts of the eventual resolution of the strikes.

How AI legalese decoder Can Help

The AI legalese decoder can play a crucial role in this situation by providing legal professionals and executives at Warner Bros. Discovery with real-time analysis and updates on the strike-related developments. By leveraging advanced natural language processing and machine learning algorithms, the AI legalese decoder can quickly process and understand complex legal documents, regulatory filings, and industry news. It can help highlight key insights, such as the potential duration of the strikes, the financial impact on the company, and the likelihood of resolution.

The AI legalese decoder can also assist in monitoring the progress of negotiations between Warner Bros. Discovery and the Hollywood unions. It can analyze statements and public announcements from both parties, identifying any signs of potential breakthroughs or areas of disagreement. By providing timely and accurate information, the AI legalese decoder enables executives to make informed decisions and adjust their strategies accordingly.

In addition, the AI legalese decoder can help automate compliance-related tasks by ensuring that the company remains updated on any legal obligations and requirements arising from the strikes. It can identify any potential risks or legal implications that need to be addressed, allowing Warner Bros. Discovery to take proactive measures and minimize disruptions to its operations.

In summary, the AI legalese decoder offers Warner Bros. Discovery a comprehensive solution for navigating the challenges posed by the ongoing strikes. It empowers the company with actionable insights, real-time updates, and automated compliance support, enabling effective decision-making and strategic planning.

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