Markets Defused aims to give an easy-to-understand and straightforward recap of the day’s most engaging stock market news.
- Warner Bros Discovery sees Max streaming growth
- Air-fryer firm SharkNinja still sees strong demand
- ITV looking for Euro 2024 boost after dip in revenues
- Hipgnosis takeover saga comes to an end
Warner Bros Discovery sees Max streaming growth
Warner Bros Discovery Inc (NASDAQ:WBD, ETR:J5A) reported growth in its streaming business but confirmed challenging trading for its ‘linear’ or ‘legacy’ television operations.
It is a performance that echoed Disney’s broadcast businesses earlier this week.
The HBO-Max owner highlighted it added 2 million new pay-monthly subscribers in the period, bringing its streaming audience to 99.6 million.
Max generated $2.46 billion of revenue, and streaming made $86 million of earnings for the group.
But, the TV networks suffered lower ad revenues which fell 11%, leaving the division’s revenue 8% lower at $5.13 billion
At group level revenue came in under expectations with the company reporting $9.96 billion versus analyst forecasts for $10.23 billion. It meant that Warner’s net loss of $966 million, 40 cents per share, was much worse than the 24 cents that the market had ancitipated.
Chief executive David Zaslav talked up the upcoming expansion and roll-out of Max worldwide.
“We delivered meaningful growth in our streaming business with a nice acceleration in ad sales, generating nearly $90 million in positive EBITDA for the quarter,” Zaslav said.
He added: “We will soon be rolling out Max to 29 countries across Europe, and the content lineup for Max over the coming year is one of our strongest ever.
Another apparent silver-linnig was the strong box-office showing for Dune 2 which banked $700 million, and alongside Godzilla x Kong: The New Empire helped the movie division reach $1.2bn of gross box office takings.
In New York, WBD stock was resilient rising 1.47% to change hands at $7.92.
Air-fryer firm SharkNinja is still seeing strong demand
Shares in air-fryer maker SharkNinja (NYSE:SN) sizzled higher in Thursday’s trading as it impressed Wall Street with its first-quarter financials.
At $1.07 billion revenue for the three month period was up more than 24% from the same period last year, and it was comfortably ahead of the $918 million forecast by analysts.
The company, which also sells a range of popular household gadgets, told investors that its ‘food preparation appliances’ businesses had experienced a 74% uptick in sales compared to last year.
Chief executive Mark Barrocas described it as “a strong start to 2024”.
“We are gaining share in our existing product categories and geographies, we have a robust pipeline of innovative products in new categories, and we see significant opportunity to grow in international markets,” Barrocas said.
“Based on the strength of our performance so far, we are raising our full year outlook.”
For the full-year, SharkNinja reckons it will grow its sales by 10-12%, and it forecasts earnings (adjusted EBITDA) in the range of $840 million and $870 million which, if achieved, would mark a 17% to 21% improvement on 2023.
SharkNinja stock was upmore than 6% trading at $71.16 mid-way through the session.
ITV looking for Euro 2024 boost after dip in revenues
In the UK, ITV PLC (LSE:ITV) was not excluded from the trend of declining ‘legacy’ media – like Warner and Disney stateside, the British broadcaster is similarly seeing growth online but tough trading in its traditional TV business.
ITV today reported a 7% decline in first-quarter revenue, which amounted to £887 million.
The company’s streaming platform, ITVX, grew its audience by some 16%, when counted in ‘streaming hours’. and it also saw a 14% improvement in digital advertising revenue.
ITV is now focussing its attentions on cost-cutting, whilst pinning hopes on England and the upcoming European football championship in June – the idea is that on-pitch success for Gareth Southgate’s England team will translate into a feel-good summer spending spree for advertisers.
It is among the rare times that ‘terrestrial’ TV broadcasters are able to capture live football audiences, ITV may be set for significantly higher viewership as it splits the 51-game tournament with the BBC.
In London, meanwhile, the City was supportive with the share up 1.78% closing the session at 75.68p.
Hipgnosis takeover saga comes to an end
The Hipgnosis Songs Fund (Hipgnosis Songs Fund Limited (LSE:SONG)) takeover saga appears to be reaching a conclusion, with the Blackstone investment group now expected to take the spoils.
It comes after it was announced today that rival bidder Concord would not increase its previous offer, which was pitched at $1.25 per share.
Blackstone higher $1.30 per share bid should therefore be sufficient to capture Hipgnosis, which holds the rights to a catalogue of pop and rock artists including Ed Sheeran, Lady Gaga and Fleetwood Mac.
It looks set to give investors a welcome exit after several months of uncertainty and volatility.