Warner Bros. Discovery (NASDAQ:WBD) reported its Q4 results on Thursday, with EPS coming in at ($0.86), worse than the Street estimate of ($0.29). Revenue was $11.01 billion (down 11.3% year-over-year), missing the Street estimate of $11.23 billion, on lower Studios content and Networks advertising revenue.

Adjusted EBITDA was down 5% year-over-year to $2.60 billion, 1.3% above the Street estimates and reflected meaningfully lower DTC losses somewhat offset by lower contributions at Studios and higher corporate costs.

Notably, DTC losses were significantly narrower than expected in the quarter and management is eyeing roughly break-even in Q1/23 ahead of the upcoming domestic launch of the re-imagined streaming service (unveiling slated for April 12th). Cyclical and secular challenges across the linear ad market are weighing on results and sentiment, though it is expected that some of this pressure will abate throughout the year.