Warner Bros. Discovery, Inc. (WBD) Bundle
A Brief History of Warner Bros. Discovery
Warner Bros. Discovery, Inc. (WBD) was formed following the merger of WarnerMedia and Discovery, Inc. on April 8, 2022. This merger aimed to create a leading global media company that combines the strengths of both legacy WarnerMedia and Discovery's extensive portfolio of real-life entertainment.
Financial Performance as of September 30, 2024
For the nine months ended September 30, 2024, Warner Bros. Discovery reported a net loss of $10.842 billion, compared to a net loss of $2.687 billion for the same period in 2023. This significant increase in net loss was primarily driven by a non-cash goodwill impairment charge of $9.1 billion related to the Networks reporting unit.
The company's total revenues for the nine months ended September 30, 2024, amounted to $29.294 billion, a decrease of 6% compared to $31.037 billion in the prior year. Revenue components included:
| Revenue Source | 2024 (in millions) | 2023 (in millions) | Change (%) |
|---|---|---|---|
| Distribution | $14,784 | $15,324 | -4% |
| Advertising | $6,260 | $6,613 | -5% |
| Content | $7,388 | $8,240 | -10% |
| Other | $862 | $860 | 0% |
| Total Revenues | $29,294 | $31,037 | -6% |
Adjusted EBITDA for the nine months ended September 30, 2024, increased by $110 million, despite the adverse effects of the Olympic broadcasts in Europe, which negatively impacted adjusted EBITDA by $42 million.
Debt and Capital Resources
As of September 30, 2024, Warner Bros. Discovery had a total debt of $40.232 billion, with a weighted-average interest rate of approximately 4.10%. The company had no outstanding borrowings under its revolving credit facility or commercial paper program at that time.
The breakdown of the company's debt is as follows:
| Debt Type | Amount (in millions) | Weighted-Average Interest Rate |
|---|---|---|
| Senior Notes (5 years or less) | $14,088 | 4.10% |
| Senior Notes (5-10 years) | $7,974 | 4.37% |
| Senior Notes (more than 10 years) | $18,170 | 5.20% |
| Total Debt | $40,232 |
During the nine months ended September 30, 2024, the company engaged in significant debt management activities, including repurchasing or repaying $5.387 billion of senior notes and issuing new senior notes totaling €1.5 billion to optimize its capital structure.
Operational Changes and Strategic Initiatives
Throughout 2024, Warner Bros. Discovery continued to focus on integrating its operations and enhancing its streaming services, particularly through the Max platform. The company reported a 5% increase in domestic linear contractual affiliate rates, driven by the launch of Max in new markets.
The operational challenges included a 21% decline in audience for domestic linear networks, prompting the company to adapt its content and marketing strategies to retain subscriber engagement.
As of September 30, 2024, Warner Bros. Discovery had $3.336 billion in cash and cash equivalents, ensuring sufficient liquidity to support ongoing operations and strategic investments.
Conclusion
As Warner Bros. Discovery navigates its post-merger landscape, the company is focused on leveraging its extensive content library and improving operational efficiencies to drive future growth.
A Who Owns Warner Bros. Discovery, Inc. (WBD)
Ownership Structure
As of 2024, Warner Bros. Discovery, Inc. (WBD) is publicly traded on the NASDAQ under the ticker symbol "WBD". The ownership of WBD is distributed among various institutional and individual investors, with significant stakes held by major investment firms. The largest shareholders include:
| Shareholder | Ownership Percentage | Type of Stake |
|---|---|---|
| Vanguard Group Inc. | 8.03% | Institutional |
| BlackRock Inc. | 7.85% | Institutional |
| State Street Corporation | 4.99% | Institutional |
| Wellington Management Group LLP | 4.12% | Institutional |
| Invesco Ltd. | 3.60% | Institutional |
| FMR LLC (Fidelity) | 3.45% | Institutional |
| Geode Capital Management LLC | 2.98% | Institutional |
| Other Institutional Investors | 61.93% | Various |
| Individual Shareholders | 14.07% | Retail |
Recent Stock Performance
As of September 30, 2024, the stock price of WBD was approximately $20.15 per share. The company's market capitalization was around $50.6 billion. Over the past year, the stock has seen fluctuations due to market conditions and company performance:
| Metric | Value |
|---|---|
| 52-Week High | $27.50 |
| 52-Week Low | $15.00 |
| Year-to-Date Performance | -15.2% |
| Average Daily Volume | 6.5 million shares |
Financial Overview
For the nine months ending September 30, 2024, WBD reported total revenues of $29.294 billion, a decrease from $31.037 billion in the same period of the previous year. Key financial metrics are as follows:
| Financial Metric | Value (in millions) |
|---|---|
| Total Revenues | $29,294 |
| Operating Income (Loss) | $(10,194) |
| Net Income (Loss) | $(10,842) |
| Cash and Cash Equivalents | $3,336 |
| Total Debt | $40,232 |
Future Prospects
WBD is expected to focus on expanding its direct-to-consumer offerings, particularly with its streaming service Max. The company anticipates growth in subscriber numbers and revenue from advertising and content distribution in the coming quarters. As of September 30, 2024, the total number of subscribers was reported as:
| Subscriber Category | Count (in millions) |
|---|---|
| Total Domestic Subscribers | 52.6 |
| Total International Subscribers | 57.9 |
| Total DTC Subscribers | 110.5 |
Warner Bros. Discovery, Inc. (WBD) Mission Statement
Overview of Mission Statement
The mission statement of Warner Bros. Discovery, Inc. (WBD) emphasizes the company's commitment to delivering high-quality content across multiple platforms while fostering creativity and innovation in the entertainment industry. The company seeks to engage audiences worldwide through its diverse portfolio of brands and storytelling.
Core Values
- Creativity: Encouraging innovative storytelling and artistic expression.
- Integrity: Upholding ethical standards in all business practices.
- Diversity: Promoting inclusivity in content creation and company culture.
- Community: Engaging with audiences and contributing positively to society.
Financial Performance
As of September 30, 2024, Warner Bros. Discovery reported a net loss of $10,842 million for the nine-month period, compared to a loss of $2,687 million in the same period of the previous year.
Revenue Breakdown
The following table presents the revenue breakdown for Warner Bros. Discovery for the nine months ended September 30, 2024:
| Revenue Source | 2024 (in millions) | 2023 (in millions) | % Change |
|---|---|---|---|
| Distribution | $14,784 | $15,324 | (4%) |
| Advertising | $6,260 | $6,613 | (5%) |
| Content | $7,388 | $8,240 | (10%) |
| Other | $862 | $860 | — |
| Total Revenue | $29,294 | $31,037 | (6%) |
Adjusted EBITDA
Adjusted EBITDA for the nine months ended September 30, 2024, was reported at $(10,194) million, a significant decrease compared to $(1,366) million for the same period in 2023.
Subscriber Metrics
As of September 30, 2024, Warner Bros. Discovery had the following subscriber metrics:
| Category | September 30, 2024 | September 30, 2023 | % Change |
|---|---|---|---|
| Total Domestic Subscribers | 52.6 million | 52.6 million | 0% |
| Total International Subscribers | 57.9 million | 43.3 million | 34% |
| Total DTC Subscribers | 110.5 million | 95.9 million | 15% |
Debt and Financial Obligations
As of September 30, 2024, Warner Bros. Discovery had total liabilities amounting to $70,159 million, with a noncurrent portion of debt of $37,166 million.
Cash Flow Overview
The company reported cash and cash equivalents of $3,336 million as of September 30, 2024. The following table summarizes cash flows for the nine months ended September 30, 2024:
| Cash Flow Activity | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $2,660 | $3,899 |
| Net Cash Used in Investing Activities | ($355) | ($1,025) |
| Net Cash Used in Financing Activities | — | ($2,850) |
How Warner Bros. Discovery, Inc. (WBD) Works
Company Overview
Warner Bros. Discovery, Inc. (WBD) operates as a global media and entertainment company. It was formed from the merger of WarnerMedia and Discovery, Inc. in 2022. The company's operations span various segments, including Studios, Networks, and Direct-to-Consumer (DTC) services.
Financial Performance
As of September 30, 2024, Warner Bros. Discovery reported the following financial results:
| Financial Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Total Revenues | $9,623 million | $9,979 million | $29,294 million | $31,037 million |
| Operating Income (Loss) | $281 million | $97 million | ($10,194 million) | ($1,366 million) |
| Net Income (Loss) | $141 million | ($407 million) | ($10,842 million) | ($2,687 million) |
| Adjusted EBITDA | $2,115 million | $2,396 million | $6,232 million | $6,855 million |
Revenue Breakdown
The following table shows the revenue breakdown by segment:
| Segment | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Distribution | $4,920 million | $5,026 million | $14,784 million | $15,324 million |
| Advertising | $1,682 million | $1,796 million | $6,260 million | $6,613 million |
| Content | $2,721 million | $2,840 million | $7,388 million | $8,240 million |
| Other | $300 million | $317 million | $862 million | $860 million |
Debt and Financial Obligations
As of September 30, 2024, Warner Bros. Discovery reported total debt of $40,232 million. The debt structure is as follows:
| Debt Type | Amount (in millions) | Weighted-Average Interest Rate |
|---|---|---|
| Senior notes with maturities of 5 years or less | $14,088 million | 4.10% |
| Senior notes with maturities between 5 and 10 years | $7,974 million | 4.37% |
| Senior notes with maturities greater than 10 years | $18,170 million | 5.20% |
Content Strategy
WBD continues to invest in content creation and acquisition, with a focus on original programming and sports rights. The company has committed significant resources to enhance its streaming service, Max. The following table outlines the key content expenses:
| Content Expense Type | Amount (in millions) |
|---|---|
| Theatrical film production costs | $5,888 million |
| Television production costs | $7,284 million |
| Licensed content and advances | $4,316 million |
| Total film and television content rights | $20,727 million |
Subscriber Metrics
The company has reported growth in its direct-to-consumer subscriber base, with a 15% increase in subscribers following the launch of Max in Latin America and Europe. The average revenue per user (ARPU) is as follows:
| ARPU Type | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Domestic ARPU | $11.99 | $11.29 |
| International ARPU | $4.05 | $3.98 |
| Global ARPU | $7.84 | $7.88 |
Market Trends and Challenges
WBD faces challenges from declining traditional cable subscriptions and increased competition in the streaming space. The company is adapting by focusing on digital content distribution and enhancing its advertising capabilities.
How Warner Bros. Discovery, Inc. (WBD) Makes Money
Revenue Streams
Warner Bros. Discovery, Inc. (WBD) generates revenue through multiple segments, primarily including Studios, Networks, and Direct-to-Consumer (DTC) services. As of September 30, 2024, the company reported total revenues of $9,623 million for the quarter, a decrease of 4% from the previous year. The breakdown of revenue by segment is as follows:
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | % Change |
|---|---|---|---|
| Studios | $2,680 | $3,226 | (17%) |
| Networks | $5,010 | $4,868 | 3% |
| DTC | $2,634 | $2,438 | 8% |
| Total | $9,623 | $9,979 | (4%) |
Studios Segment
The Studios segment, which includes film and television production, contributed $2,680 million in revenue for Q3 2024, a 17% decline compared to Q3 2023. This decrease is primarily due to a 54% drop in distribution revenue, attributed to fewer theatrical releases and lower film rental revenue.
Networks Segment
The Networks segment generated $5,010 million in revenue, marking a 3% increase year-over-year. This growth is driven by a steady increase in affiliate fees, despite a decline in advertising revenue due to audience declines on domestic networks.
Direct-to-Consumer (DTC) Segment
The DTC segment saw revenues of $2,634 million, up 8% from the prior year. This increase is supported by a rise in subscriber numbers and higher subscription prices following the launch of Max in various international markets. As of September 30, 2024, WBD reported a total of 110.5 million DTC subscribers, a 15% increase from 95.9 million a year earlier.
Advertising Revenue
Advertising revenue for WBD decreased by 6% to $1,682 million in Q3 2024 compared to Q3 2023. The decline is attributed to a 21% drop in audience viewership across domestic networks, which negatively impacted advertising prices.
Costs and Expenses
Total costs and expenses for WBD reached $9,342 million in Q3 2024, a 5% decrease from Q3 2023. Notable components include:
| Cost Component | Q3 2024 (in millions) | Q3 2023 (in millions) | % Change |
|---|---|---|---|
| Costs of Revenues | $5,181 | $5,309 | (2%) |
| Selling, General and Administrative | $2,385 | $2,291 | 4% |
| Depreciation and Amortization | $1,762 | $1,989 | (11%) |
| Total Costs and Expenses | $9,342 | $9,882 | (5%) |
Adjusted EBITDA
For Q3 2024, WBD reported an Adjusted EBITDA of $2,115 million, down 12% from $2,396 million in Q3 2023. The decrease reflects higher operational costs, particularly in marketing and overhead associated with ongoing launches of Max.
Net Income
WBD reported a net income of $141 million for Q3 2024, a significant improvement compared to a net loss of $407 million in Q3 2023. However, the nine-month period ending September 30, 2024 shows a net loss of $10,842 million, compared to a loss of $2,687 million for the same period in 2023.
Future Revenue Expectations
As of September 30, 2024, WBD anticipates recognizing approximately $10,202 million from remaining performance obligations under long-term contracts, spanning various revenue streams including distribution, content licensing, and advertising.
Warner Bros. Discovery, Inc. (WBD) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Warner Bros. Discovery, Inc. (WBD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Warner Bros. Discovery, Inc. (WBD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Warner Bros. Discovery, Inc. (WBD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.