Warner Bros. Discovery (NASDAQ:WBD) announced its fourth-quarter results that fell short of the average forecasts by analysts. Following the announcement, the company’s shares dropped more than 13% intra-day on Friday.

Facing similar challenges as its peers, Warner Bros. Discovery has been navigating the shift from traditional TV to streaming platforms. CEO David Zaslav highlighted that the company has stabilized its position thanks to a concerted effort to enhance its direct-to-consumer services. He elaborated on a strategic “attack plan” to expand the Max streaming service into crucial international markets and to bolster the studios division with a stronger lineup of releases.

Zaslav expressed confidence in the company’s prospects for generating consistent operational progress and improving value for shareholders.

The company’s networks segment, home to channels such as CNN and TBS, saw a 14% drop in advertising revenue in Q4. This decline was attributed to shrinking audiences and a sluggish linear ad market in the U.S. Nonetheless, this downturn was partially compensated by increased engagement with Max, leading to a 51% rise in advertising revenue in its direct-to-consumer division.

Overall, the company witnessed a 7% decrease in total revenue to $10.28 billion, below the expected $10.46 billion by Wall Street analysts, while its net loss reduced to $400 million.

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