Warner Bros. DiscoveryThe company’s shares fell on Wednesday after the company reported $9.1 billion in write-downs at its TV networks and missed analysts’ revenue estimates.

Here’s how Warner Bros. Discovery performed according to an analyst survey conducted by LSEG:

• Loss per share: 36 cents compared to an expected loss of 22 cents
• Revenue: 9.7 billion US dollars compared to expected 10.07 billion US dollars

The company’s shares lost about 9 percent in after-hours trading.

Warner Bros. Discovery on Wednesday reported a non-cash goodwill impairment charge triggered by a reassessment of the carrying value of its television broadcasting segment, which found the carrying value to be higher than market value as traditional television broadcasters continue to lose customers and advertisers prefer to invest in digital media and streaming instead.

“While I certainly don’t deny the magnitude of this impairment, I believe it is equally important to recognize that the flip side of this reflects the shift in value across all business models,” CFO Gunnar Wiedenfels said on Wednesday’s conference call, adding that the company is focused on growth in its studios and streaming units.

He said Warner Bros. Discovery’s balance sheet reflects significant goodwill resulting from mergers and acquisitions, particularly the combination of Warner Bros. and Discovery in 2022.

“It is fair to say that market valuations and prevailing conditions for traditional media companies were very different just two years ago than they are today. This impairment reflects that and better aligns our book values ​​with our future prospects,” CEO David Zaslav said in the conference call on Wednesday.

Executives stressed that Warner Bros. Discovery plans to continue to reduce debt, much of which is due to the merger in 2022. In the second quarter, the company paid down $1.8 billion in debt. As of June 30, the company had gross debt of $41.4 billion and $3.6 billion in cash on hand.

The company also pointed to uncertainties regarding the renewal of future sports rights, including the NBA. Warner Bros. Discovery sued the NBA in July, seeking to forcibly invoke its matching rights for a package of games that were Amazon‘s Prime Video as part of the league’s new media rights deal.

Revenues for Warner Bros. Discovery’s TV networks – which include TBS, TNT, Discovery and TLC – fell 8% to $5.27 billion in the second quarter, with both distribution and advertising revenues declining in the segment.

One bright spot, however, was the company’s streaming business around the Max platform.

The company said Wednesday that it added 3.6 million subscribers in the quarter ended June 30, bringing its total global streaming customers to 103.3 million.

International expansion, which is driving rising subscriber numbers, as well as increased advertising spending on streaming are driving the streaming business toward profitability, executives said Wednesday, and that trend is expected to continue.

Zaslav also promoted the streaming packages that Warner Bros. Discovery is currently developing – an entertainment pairing with Disney’s Disney+ and Hulu – and a sports package with Disney’s ESPN and Fox The market launch is planned for this autumn.

Still, direct-to-consumer streaming revenue fell 5% to $2.57 billion, driven by a 70% decline in content revenue due to a lower volume of third-party licensing deals. However, streaming advertising revenue increased 99%, the company said, driven by higher domestic participation in Max and growth in ad-supported subscribers. Global revenue also increased 4%, driven by the advertising tier.

Total revenue for the quarter fell 6% to $9.7 billion. Adjusted earnings before interest, taxes, depreciation and amortization fell 15% to $1.8 billion.

Correction: This article has been updated to reflect that Warner Bros. Discovery’s revenue for the quarter was $9.7 billion.