Warner Bros. Discovery Sees ‘No Impact’ From Tariffs: ‘So Far, So Good’

Warner Bros. Discovery has seen “no material impact whatsoever” from President Donald Trump’s tariffs so far, CFO Gunnar Widenfels said on the company’s first quarter earnings call on Wednesday.

“The good news is so far, so good. As you would imagine, for the past five weeks or so, we’ve been tracking very, very closely all the indicators, internally and externally. And the reality is, we’re not seeing any impact whatsoever to this point, in fact, starting with advertising, which would naturally be the part of our business that would be most impacted by declining consumer sentiment and maybe slowing GDP growth,” Widenfels said.

The CFO added that Q2 is tracking “pretty much exactly in line” with Q1 as it relates to tariff impact, but the company is also taking precautionary measures.

“We do obviously look at sort of external projections and we have a much more diversified portfolio now than we used to have,” he continued. “Advertising obviously would be at risk to some extent. We have the upfront discussions that are that are probably going to go a little slower, start a little slower this year. At the same time, we see that being offset by pretty strong scatter at this point. And nonetheless, we’ve managed through turbulent times as a leadership team. And we would do the same, should the outlook deteriorate in the second half.”

Widenfels acknowledged the company took an initial step when the tariffs were first announced to rein in corporate spending on travel, but said the company expects the corporate cost number to be down year over year for the full year.

Warner Bros. Discovery missed Wall Street expectations when reporting Q1 earnings on Wednesday morning, as ad revenue tumbled 8% to $1.98 billion.

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