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Warner Bros. Discovery (WBD) Announces Currency Providers

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Warner Bros. Discovery (WBD - Free Report) recently announced its partnership with Comscore and VideoAmp. The companies will enable alternate currencies for advertisers across the nation on transactions in its linear inventory and advanced marketing solutions for 2023-2024 upfront.

This partnership will provide an important option to marketers, so that the impact of these companies is maximized. It will also enhance the cross-platform partnership and unlock new features for users to target its customers.

Warner Bros. Discovery is focused to provide its users a wide range of portfolio and currency solutions to strive in a competitive market. Advertisers can easily access Warner Bros. Discovery’s brands, premium IP and franchises with a proper currency and measurement system.

Last year, Warner Bros. Discovery started a rigorous testing and learning assessment to evaluate third-party measurement providers. This assessment was to identify potential partners. It spanned across five key areas, method, report, activation, stewardship and campaign results.

The key insights to attain alternate currency at scale include standardization, personification, transaction capability and identity resolution. With Warner Bros. Discovery using audience-based measurement approach, it will keep testing and learning with Comscore, VideoAmp and other partners also.


Focus on Advertising Revenues to Boost Bottom Line

This Zacks Rank #3 (Hold) company’s focus is to provide best features to its advertisers to boost bottom line. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

WBD reported fourth-quarter 2022 loss of 86 cents per share, missing the Zacks Consensus Estimate of a loss of 3 cents per share. Revenues increased 245.4% year over year to $11 billion, which missed the Zacks Consensus Estimate by 0.2%.

Management has been planning to focus on boosting its bottom line as well as competing with giants like Disney (DIS - Free Report) , Netflix (NFLX - Free Report) and Charter Communications (CHTR - Free Report) . Shares of WBD have declined 45.5% in the past year compared with the Zacks Consumer Discretionary sector’s fall of 22.6% in the same period.

According to an Seeking Alpha report, WBD generates the lowest net income compared with its three biggest rivals. The reason being high operational cost and relatively less sales. Disney generating the highest revenues followed by Charter Communication, Netflix and Warner Bros. Discovery.

All the major streamers reported negative bottom line for the streaming business in the last quarter except for Netflix. These streaming platforms are focused on profitability and believe the same could be only achieved by realizing the full potential of advertisement revenues. Advertisement revenues already make a good portion of the total revenues, but is not even close to its potential.

Warner Bros. Discovery has introduced advertisement on HBO, which has already received an overwhelming response. The demand for advertisements is set to increase with the Winter Olympics Games in the upcoming quarter. The Zacks Consensus Estimate for revenues for the first-quarter is currently pegged at $10.67 billion, indicating growth of 237.75% year-over-year.

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