Warner Bros. Discovery’s stock takes a hit as the company reports a loss that exceeds expectations and revenue that falls short of consensus.

Warner Bros. Discovery Inc.’s stock took a hit early Thursday, dropping 3.2%, following the release of disappointing first-quarter results. The company reported a larger loss than anticipated and revenue that fell below expectations. The company reported a net loss of $966 million, or 40 cents a share, for the quarter, which is an improvement compared to the loss of $1.069 billion, or 44 cents a share, in the same period last year.

The revenue decreased from $10.700 billion to $9.958 billion. The FactSet consensus projected a loss of 20 cents and revenue of $10.223 billion. The loss consisted of $1.879 billion in pretax charges related to the amortisation of intangibles from acquisitions, fair value adjustments for content, and charges for restructuring.

The company’s streaming business experienced significant growth during the period, and CEO David Zaslav announced plans to expand Max to 29 European countries in the near future. In the year to date, the stock has experienced a significant decline of 31%, in contrast to the S&P 500 which has seen a positive gain of 8.8%.

See Also : Disney+, Hulu, and Max will now be included in a new bundle as streaming rivals join forces.