• by Wayne Friedman , 2 hours ago

The absence of NBA programming drove a massive 22% decline for Warner Bros. Discovery to $1.7 billion in the company's second-quarter reporting period.

The lack of NBA programming by itself was responsible for 20% of the decline overall. There were 17% domestic linear audience declines at all the company's networks.

The broadcast of the NCAA March Madness Final Four and Championship was positive news.

Streaming advertising -- a tiny part of the overall company's ad business -- grew 9% to $306 million. Looking just at global linear networks, they were down 27% to $1.43 billion.

Overall distribution revenue was one bright spot, up 1% overall (cable TV networks and streaming platforms) to $4.95 billion.

Linear TV networks were down 9% ($2.3 billion) in distribution revenues, with streaming up 12% ($2.7 billion).

Company-wide revenue sank 12% from $8.7 billion, with net income down 91% to $149 million.

The downturn was mostly attributable to linear TV networks, down 17% to $4.0 billion.

Content sales and studios sank 39% to $2.3 billion, and declining content revenue was due to lower theatrical business.

Streaming growth continued to be a bright spot for the company, with total revenues up 10% to $3.1 billion.

Cash flow at the business nearly doubled the total from the same period the previous year to $512 million in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization).

That in itself propelled the company’s stock to inch up 2% in midday trading to $26.50.

A 12-state antitrust lawsuit to block Paramount Skydance's $111 billion purchase of Warner Bros. Discovery now has a federal court trial date of March 2027.

Paramount has agreed not to close the mega-merger until a post-trial ruling or June 1, 2027, whichever comes first.