Question-and-Answer SessionHowever, as you've done that, the industry continued to evolve and change. So you've announced plans to split the company into Warner Bros. and Discovery Global, where you will be the CEO. What is the time line of the split?Let's focus a little bit on Warner Media and Discovery first, but it's been 3 years since the merger, and you spent a great deal of that time restructuring, transforming, realigning the company across every single division. You've accomplished a great deal.Gunn ...

Summary of Warner Bros. Discovery (WBD) 2025 Conference Call Company Overview - **Company**: Warner Bros. Discovery (WBD) - **Event**: 2025 Conference Call - **Date**: September 03, 2025 Key Points Company Split and Structure - WBD plans to split into two entities: Warner Brothers and Discovery Global, with a target completion in Q2 2026 [2][3][4] - The split is seen as a significant value creation opportunity, with ongoing momentum in business fundamentals [4][5] Financial Performance and Debt Management - Current net debt stands at approximately $30 billion, with expectations to reduce this significantly by year-end [5] - The company has successfully executed a tender offer to aid in deleveraging [5] - Financial guidance includes at least $2.4 billion for the studio and $1.3 billion for streaming for the year [9] Creative and Operational Success - The film division has achieved six successful openings, generating around $40 million each [8] - The studio aims for a target of $3 billion in EBITDA potential, indicating room for further growth beyond this interim goal [15][16] - The management emphasizes a disciplined approach to budgeting and production, leading to cost savings and improved profitability [21][23] Streaming and Content Strategy - HBO Max is expected to achieve a long-term margin potential of over 20%, with a focus on customer lifetime value versus subscriber acquisition cost [29] - The company is exploring various pricing strategies, including wholesale agreements to drive subscriber growth [35] - There is a significant opportunity in advertising, particularly in international markets [44] Future Opportunities and Market Position - The company sees potential in international markets, particularly in Europe, where it has established strong positions [52][64] - WBD is focused on leveraging its valuable content brands beyond traditional linear networks, exploring digital expansion and new monetization strategies [51][52] - The management is optimistic about the DC franchise, viewing it as undervalued with significant potential for growth [24][26] Challenges and Industry Trends - The industry is shifting towards profitability, which is seen as a positive trend for sustainability [27] - There are anticipated increases in sports rights costs, with an expected $300 million increase in 2025 [65] - The company is cautious about potential consolidation in the direct-to-consumer (DTC) space, emphasizing a disciplined approach to any opportunities [39][63] Upcoming Milestones - Key milestones for investors include the completion of the company split and the launch of new streaming products, particularly in the UK, Italy, and Germany [38][70] - The management plans to provide more detailed strategies and financial projections closer to the separation date in Q2 2026 [72] Additional Insights - The management team expresses high energy and excitement about the future, focusing on growth opportunities that were previously overlooked as part of a larger conglomerate [49] - The emphasis on quality over quantity in content production is a core part of the strategy moving forward [42]

NEW YORK, Aug. 20, 2025 /PRNewswire/ -- Warner Bros. Discovery, Inc. (Nasdaq: WBD) today announced that its President and CEO David Zaslav and its Chief Financial Officer Gunnar Wiedenfels will present at conferences during the month of September. About Warner Bros. Discovery: Warner Bros. Discovery is a leading global media and entertainment company that creates and distributes the world's most differentiated and complete portfolio of branded content across television, film, streaming and gaming. Warner Br ...

张钢的办公室里贴满了他为《猫和老鼠：星盘奇缘》（以下简称《星盘奇缘》）设计的分镜照片，能容纳30人的办公室里密密麻麻摆满了电脑。五年来这 些电脑的"主人"们没有休过完整的周末，如今电影上映，他们终于能放一次大假了。 在电影制作的五年间，墙面上张贴的这几百张分镜曾让张钢十分痛苦。作为导演，他甚至一度担心这个项目"黄了"，好在最终它们都出现在了华纳兄弟与 中影集团联合投拍的《猫和老鼠》大电影——《星盘奇缘》中。 导演办公室贴的分镜图。摄影：李晓天 5年前，他离开了号称国内动画电影行业"黄埔军校"的青青树动画，创立初心映画，头一年就收到了华纳兄弟要投拍《猫和老鼠》大电影的消息。彼时国 内动画电影行业尚未出现《哪吒》系列，一切都还在萌发阶段。 在他看来，这不仅是一个为公司谋发展的绝佳机会，更是一个去海外"秀肌肉"的舞台，"过去几年中国的动画电影制作已经很成熟了，跟我们合作的工作 室也攒着劲想让外国人看看水平。"张钢说。 但他和制片人杨劭靖都没料到这条路这么难，跟国际头部公司合作，此前并没有多少可参考的范例，甚至于连付款流程都要去摸索，更别说期间还经历了 华纳兄弟组织架构调整等临时状况。 到今年8月2日上映，张钢数次悬 ...

Group 1 - Warner Bros. Discovery (NASDAQ: WBD) reported earnings and has fallen below a $30 billion market cap [2] - Despite the decline in market cap, the company has outperformed the S&P 500 since the last investment recommendation [2] - The Value Portfolio focuses on building retirement portfolios through a fact-based research strategy, including analysis of 10Ks, analyst commentary, and market reports [2]

Core Viewpoint - Warner Bros. Discovery (WBD) reported its fiscal second-quarter results, showing mixed performance with revenue slightly missing analyst expectations but earnings per share exceeding forecasts [1][3][7]. Financial Performance - WBD's quarterly revenue was $9.81 billion, flat year-on-year, missing the consensus estimate of $9.72 billion [1] - Earnings per share (EPS) was reported at $0.63, surpassing the analyst consensus estimate of a 22-cent loss [1] - Adjusted EBITDA increased by 9% to $1.9 billion, exceeding expectations by 8% [3] Revenue Breakdown - Studio revenue surged 55% to $3.8 billion, with adjusted EBITDA of $863 million, driven by successful theatrical releases [4] - Global Linear Networks revenue fell 9% to $4.8 billion, while Streaming revenue grew 9% to $2.8 billion, generating $293 million in adjusted EBITDA compared to a loss in the previous year [4] Subscriber Growth - Streaming subscribers increased by 22% year-over-year to 125.7 million, with 57.8 million in the U.S. and 67.9 million internationally, achieving an average revenue per user (ARPU) of $7.14 [5] Future Guidance - WBD reaffirmed its 2025 streaming adjusted EBITDA guidance of at least $1.3 billion [5] - Analyst projections for 2025 include revenue of $38.1 billion, adjusted EBITDA of $8.9 billion, and EPS of $0.36 [6] - For 2026, revenue is forecasted at $38.2 billion, adjusted EBITDA at $9 billion, and a loss per share of $0.35 [6] Analyst Ratings - Needham analyst Laura Martin maintained a Hold rating on WBD, while Bank of America Securities analyst Jessica Reif Ehrlich maintained a Buy rating with a price target of $16 [2] Market Reaction - Following the results, WBD's stock traded lower by 4.72% to $11.30 [11]

Analyst's Disclosure:I/we have a beneficial long position in the shares of WBD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Disclaimer: I am not an investment advisor and this is not a recommendation to buy or sell a security. Investors are recommended to read all of ...

PART I. FINANCIAL INFORMATION [Unaudited Financial Statements](index=4&type=section&id=ITEM%201.%20Unaudited%20Financial%20Statements) Q2 2025 statements show a turnaround to net income, driven by a significant gain on debt extinguishment Consolidated Statements of Operations Highlights (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $9,812 | $9,713 | +1.0% | | Operating Loss | $(185) | $(10,208) | +98.2% | | Gain on Extinguishment of Debt | $2,958 | $542 | +445.8% | | **Net Income (Loss)** | $1,588 | $(10,028) | N/A | | Diluted EPS | $0.63 | $(4.07) | N/A | Consolidated Balance Sheet Highlights (as of June 30, 2025) | Metric | June 30, 2025 (in millions) | Dec 31, 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $4,888 | $5,312 | -7.9% | | Total Assets | $101,727 | $104,560 | -2.7% | | Total Debt (Current + Noncurrent) | $34,632 | $39,505 | -12.3% | | Total Equity | $37,323 | $34,829 | +7.2% | Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30) | Metric | 2025 (in millions) | 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | Cash provided by operating activities | $1,536 | $1,813 | -15.3% | | Cash used in investing activities | $(431) | $(137) | +214.6% | | Cash used in financing activities | $(1,886) | $(2,274) | -17.1% | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the planned corporate separation, a major debt restructuring, and key joint venture activities - In June 2025, the company announced a plan to separate into two publicly traded companies, **'Warner Bros.'** (Streaming and Studios) and **'Discovery Global'** (Global Linear Networks), expected to be completed by mid-2026[26](index=26&type=chunk) - The company completed tender offers in June 2025, purchasing **$17.7 billion in senior notes** and recording a **gain on extinguishment of approximately $3.0 billion**, funded by a new **$17.0 billion Bridge Loan Facility**[70](index=70&type=chunk)[71](index=71&type=chunk) - In January 2025, the company contributed a 70% interest in its music catalog to a joint venture with Cutting Edge Group, receiving **net proceeds of $601 million**[66](index=66&type=chunk) - The Venu Sports joint venture with Disney and Fox was discontinued in January 2025; WBD's share of a settlement paid to FuboTV was **$55 million**[130](index=130&type=chunk)[131](index=131&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the planned separation, segment performance, and significant debt restructuring activities - The company announced plans in June 2025 to separate into two publicly traded companies: **'Warner Bros.'** (Streaming & Studios) and **'Discovery Global'** (Global Linear Networks), with completion expected by mid-2026[162](index=162&type=chunk) - Key industry headwinds include continued pressures on linear distribution, declines in linear subscribers, and softness in the U.S. linear advertising market[166](index=166&type=chunk) - A significant debt restructuring occurred in Q2 2025, with the company entering a **$17.0 billion Bridge Loan Facility** to fund tender offers for **$17.7 billion** of its existing notes, resulting in a **~$3.0 billion gain on extinguishment**[183](index=183&type=chunk)[237](index=237&type=chunk) Q2 2025 Revenue Performance (ex-FX) | Revenue Stream | % Change (ex-FX) | Key Drivers | | :--- | :--- | :--- | | Distribution | 0% | Streaming subscriber growth offset linear declines | | Advertising | -10% | Audience declines in domestic networks and pricing pressure | | Content | +16% | Strong theatrical performance from films like *A Minecraft Movie* | [Streaming Segment Analysis](index=37&type=section&id=Streaming%20Segment) The Streaming segment achieved revenue growth and positive Adjusted EBITDA, driven by strong subscriber gains Streaming Subscriber Growth (as of June 30) | Subscriber Type | 2025 (millions) | 2024 (millions) | % Change | | :--- | :--- | :--- | :--- | | Total Domestic | 57.8 | 52.4 | +10% | | Total International | 67.9 | 50.8 | +33% | | **Total Streaming** | **125.7** | **103.3** | **+22%** | Streaming Segment Financials (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | % Change (ex-FX) | | :--- | :--- | :--- | :--- | | Total Revenues | $2,793 | $2,568 | +8% | | Adjusted EBITDA | $293 | $(107) | N/A | | Global ARPU | $7.14 | $8.00 | -11% | - The decrease in Global ARPU was primarily driven by the **33% growth in international subscribers**, which have a lower ARPU, and broader distribution of the lower-priced 'HBO Max Basic with Ads' tier domestically[199](index=199&type=chunk)[206](index=206&type=chunk) [Studios Segment Analysis](index=40&type=section&id=Studios%20Segment) The Studios segment delivered exceptional revenue and Adjusted EBITDA growth, fueled by strong content performance Studios Segment Financials (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | % Change (ex-FX) | | :--- | :--- | :--- | :--- | | Total Revenues | $3,801 | $2,449 | +54% | | Content Revenue | $3,591 | $2,237 | +59% | | Adjusted EBITDA | $863 | $210 | +311% | - Theatrical product revenue **increased 38% in Q2** due to the strong performance of *A Minecraft Movie*, *Sinners*, and *Final Destination Bloodlines*[214](index=214&type=chunk)[216](index=216&type=chunk) - Television product revenue **grew 115% in Q2**, primarily due to higher intercompany content licensing to other WBD segments, reflecting the timing of renewals[214](index=214&type=chunk)[215](index=215&type=chunk) [Global Linear Networks Segment Analysis](index=42&type=section&id=Global%20Linear%20Networks%20Segment) The Global Linear Networks segment faced revenue and Adjusted EBITDA declines from subscriber and advertising losses Global Linear Networks Segment Financials (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | % Change (ex-FX) | | :--- | :--- | :--- | :--- | | Total Revenues | $4,803 | $5,272 | -9% | | Distribution Revenue | $2,477 | $2,675 | -7% | | Advertising Revenue | $1,953 | $2,214 | -13% | | Adjusted EBITDA | $1,512 | $1,998 | -25% | - Distribution revenue decline was primarily caused by a **9% drop in domestic linear subscribers**[225](index=225&type=chunk) - Advertising revenue decline was driven by a **23% audience decline in domestic networks** and the absence of the NCAA Final Four, which aired in the prior year[226](index=226&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains solid liquidity while executing a major debt restructuring via a new $17.0 billion bridge loan Capital Resources (as of June 30, 2025) | Resource | Amount (in billions) | | :--- | :--- | | Cash and cash equivalents | $4.9 | | Unused Revolving Credit Facility | $4.0 | | Total Debt Outstanding | $35.0 | - In Q2 2025, the company entered into a **$17.0 billion Bridge Loan Facility** to finance tender offers for its senior notes; the bridge loan is expected to be refinanced before the planned Separation[237](index=237&type=chunk) - In January 2025, the company received **$601 million in net proceeds** from contributing a 70% interest in its music catalog to a joint venture[243](index=243&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposures have not materially changed since the previous fiscal year-end - The company's exposures to market risk **have not materially changed** since December 31, 2024[271](index=271&type=chunk) [Controls and Procedures](index=51&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with no material changes to internal financial reporting controls - Based on an evaluation as of June 30, 2025, the CEO and CFO concluded that the company's **disclosure controls and procedures were effective**[272](index=272&type=chunk) - **No changes in internal control over financial reporting** occurred during Q2 2025 that have materially affected, or are reasonably likely to materially affect, internal controls[273](index=273&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=52&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in a securities class action and a shareholder derivative action related to NBA negotiations - A securities class action (Collura v. Warner Bros. Discovery, Inc.) alleges misleading statements were made between February and August 2024 concerning **NBA contract negotiations**[276](index=276&type=chunk) - A consolidated shareholder derivative action (In re Warner Bros. Discovery, Inc. Derivative Litigation) asserts claims for breach of fiduciary duty based on the same facts as the securities case; **this action is currently stayed**[277](index=277&type=chunk) [Risk Factors](index=52&type=section&id=ITEM%201A.%20Risk%20Factors) New material risks relate to the planned corporate separation, a new bridge loan, and potential tax implications [Risks Related to the Separation](index=53&type=section&id=Risks%20Related%20to%20the%20Separation) The planned separation faces risks of non-completion, business disruption, and adverse tax consequences - **Failure to complete the planned separation** could lead to negative market reactions, wasted costs, and diversion of management focus[279](index=279&type=chunk)[284](index=284&type=chunk) - The pendency of the separation could **disrupt business relationships** with distributors, advertisers, and content providers, and place a significant burden on internal resources[281](index=281&type=chunk)[282](index=282&type=chunk) - If the separation **fails to qualify for tax-free treatment**, WBD, the new spun-off company (Spinco), and shareholders could be subject to significant U.S. federal income taxes[291](index=291&type=chunk)[292](index=292&type=chunk) [Risks Related to Financial, Capital and Corporate Structure](index=54&type=section&id=Risks%20Related%20to%20our%20Financial%2C%20Capital%20and%20Corporate%20Structure) The new $17 billion bridge loan introduces risks from restrictive covenants, interest rates, and refinancing - The new **$17 billion Bridge Loan Facility contains restrictive covenants** that limit the company's ability to engage in mergers, incur debt, and pay dividends[287](index=287&type=chunk) - A breach of covenants or default under the Bridge Loan could **trigger cross-default provisions** in other debt agreements, leading to a broader acceleration of debt[288](index=288&type=chunk) - The company may be **unable to obtain permanent financing to refinance the Bridge Loan Facility** on favorable terms, which could adversely affect its business and financial condition[290](index=290&type=chunk) [Exhibits](index=56&type=section&id=ITEM%206.%20Exhibits) This section lists filed exhibits, including credit agreements, employment contracts, and required certifications - Key exhibits filed include amendments to credit agreements, details of the new Non-Investment Grade Leveraged Bridge Loan Agreement, and employment agreements for **CEO David Zaslav and CFO Gunnar Wiedenfels**[294](index=294&type=chunk)

Group 1 - Warner Bros. Discovery, Inc. reported its Q2 earnings, showing revenue growth despite industry challenges [1] - The earnings report indicates that revenue growth is not guaranteed in the current declining market [1]

Core Insights - Warner Bros. Discovery (WBD) reported Q2 2025 earnings of 63 cents per share, exceeding the Zacks Consensus Estimate of a loss of 16 cents, compared to a loss of $4.07 per share in the same quarter last year [1][9] - Revenues increased by 1% year over year to $9.81 billion, slightly missing the Zacks Consensus Estimate by 0.15% [1] - The company ended Q2 2025 with 125.7 million global subscribers, an increase of 3.4 million sequentially [3][4] Revenue Breakdown - Advertising revenues decreased by 10% excluding foreign exchange, primarily due to declines in domestic linear audiences [2] - Distribution revenues remained relatively unchanged, with growth in global streaming subscribers offset by declines in domestic linear pay TV subscribers [2] - Content revenues increased by 16% excluding foreign exchange, driven by higher box office revenues from theatrical releases [2] - Other revenues declined by 19% year over year, impacted by separation-related costs [2] Segment Performance - Streaming segment revenues reached $2.8 billion, up 9% year over year, with subscriber revenues growing by 10% to $2.7 billion [5] - The Studios segment reported revenues of $3.8 billion, a 55% increase year over year, with profits rising to $863 million from $210 million a year ago [6] - Global Linear Networks revenues decreased by 9% year over year to $4.8 billion, with advertising revenues plunging by 12% [7] Financial Position - WBD ended Q2 2025 with $35.6 billion in gross debt and a net leverage ratio of 3.3x [11] - The company reduced gross debt by $2.7 billion during the quarter, including a $1.5 billion term loan repayment [10][11] - Cash and cash equivalents increased to $4.88 billion from $3.89 billion as of March 31, 2025 [11] Future Guidance - WBD targets at least 150 million streaming subscribers by the end of 2026 and anticipates a profit of approximately $1.3 billion from the streaming segment in 2025 [13] - The Studios segment is expected to return to $3 billion in EBITDA, driven by successful content releases [13]