Feb 23 Reuters Warner Bros Discovery reported a biggerthanexpected quarterly loss on Friday, as the media conglomerate battled a weak advertising market and the fallout of the twin Hollywood strikes on content generation.

Shares of the company, forged by the union of WarnerMedia and Discovery, tumbled nearly 12, even as it beat Disney and Paramount to an inaugural annual profit for the streaming business. Shares of Paramount fell more than 5.

The results highlight the challenges after the strikes by writers and actors paralyzed production for months before ending in September and November, respectively.

Warner Bros Discovery39;s studio business revenue sank 17 in the fourth quarter as it had little to follow the success of Barbie, which released in July and topped 1 billion in ticket sales worldwide.

The company is pinning its hopes on the March release of the second installment of scifi epic Dune, featuring Timothee Chalamet and Zendaya. The release was delayed from November due to the Hollywood strikes.

Advertising revenue at its networks segment declined 12 to 1.95 billion, hurt by the ongoing decline in audiences for traditional television and a weaker economic outlook.

Overall fourthquarter revenue of 10.28 billion missed analysts39; average estimate of 10.35 billion, per LSEG data. Excluding items, the company lost 16 cents per share, larger than expectations for a loss of 7 cents.

The decline of cable TV has in part fueled the recent buzz about a fresh…