Financial Data and Key Metrics Changes - In Q1 2025, Warner Bros. Discovery gained over 5 million subscribers, totaling more than 22 million subscribers over the last twelve months [8] - The company delivered $339 million in EBITDA for the first quarter and is on track to achieve at least $1.3 billion in EBITDA for 2025, representing an 85% increase compared to 2024 [9][10] - The goal is to surpass 150 million subscribers by the end of next year [9] Business Line Data and Key Metrics Changes - The streaming segment is experiencing significant growth, with a strong pipeline of content from HBO and local language offerings enhancing relevance in various regions [10] - Warner Bros. Television is noted as the world's leading independent TV studio, contributing to the company's cultural and commercial impact [11] - The film segment is seeing success with a mix of IP-based blockbusters and original content, highlighted by the success of the Minecraft movie and upcoming releases like Final Destination [12][13] Market Data and Key Metrics Changes - The company is expanding its global footprint, with almost half the world still untapped for its streaming services [10] - Latin America leads in engagement metrics, benefiting from a comprehensive film offering and local originals [41][42] Company Strategy and Development Direction - The company emphasizes a focus on high-quality storytelling and a commitment to leveraging its extensive IP library, including franchises like DC and Harry Potter, to drive long-term growth [10][30][74] - The restructuring into two divisions aims to enhance transparency and operational efficiency, allowing for quicker responses to market opportunities [18][20] - The strategy includes a shift from a volume-based approach to prioritizing quality content, which is expected to resonate with consumers and drive subscriber growth [79][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current macroeconomic environment, noting no material impact from recent economic conditions [48] - The leadership team is focused on maintaining a diversified portfolio and managing costs effectively to safeguard financial performance [50] - Future growth is anticipated from globalization, penetration growth in existing markets, and enhancements in product offerings [87][90] Other Important Information - The company is exploring various models for sports content, balancing costs with subscriber engagement and monetization opportunities [28] - There is a strong emphasis on bundling services to enhance consumer experience and reduce churn [92][94] Q&A Session Summary Question: Insights on capital structure and leverage ratio for global linear networks - Management refrained from speculating on capital structures but emphasized the successful reorganization to capitalize on future opportunities [17][18] Question: Potential for additional subscribers in the U.S. market - Management indicated that the rollout of password sharing initiatives will gradually increase subscriber numbers over the next 12 to 18 months [21][22] Question: Sports strategy on MAX and licensing new IPs - The company is experimenting with different models for sports content and sees opportunities to leverage sports rights while balancing costs [26][28] Question: HBO's ability to produce standout hits consistently - The strength of HBO's creative team and a focus on quality storytelling are key factors in producing successful content [35][36] Question: Engagement metrics across different demographics and markets - The U.S. market shows strong engagement among younger demographics, while Latin America leads in overall engagement metrics [40][41] Question: Impact of macroeconomic conditions on advertising channels - Management reported no significant impact on advertising revenue and remains optimistic about the upcoming upfronts [48][49] Question: Content spending strategy and licensing for third-party services - The company plans to moderately increase content spending while also leveraging its IP for external licensing opportunities [77][78]

Core Insights - Warner Bros. Discovery reported a quarterly loss of $0.18 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.12, but an improvement from a loss of $0.40 per share a year ago [1][2] - The company's revenues for the quarter were $8.98 billion, missing the Zacks Consensus Estimate by 7.34% and down from $9.96 billion year-over-year [3] - The stock has underperformed the market, losing about 19% since the beginning of the year compared to the S&P 500's decline of 4.3% [4] Financial Performance - The earnings surprise for the latest quarter was -50%, and the company has only surpassed consensus EPS estimates once in the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is -$0.19 on revenues of $9.72 billion, and for the current fiscal year, it is -$0.14 on revenues of $38.68 billion [8] Industry Context - Warner Bros. Discovery operates within the Zacks Broadcast Radio and Television industry, which is currently ranked in the top 38% of over 250 Zacks industries [9] - The industry outlook can significantly impact the stock's performance, with research indicating that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9] Future Outlook - The estimate revisions trend for Warner Bros. Discovery is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [7] - The upcoming earnings call will be crucial for assessing future earnings expectations and stock price movements [4][5]

Group 1 - Warner Bros. Discovery experienced a mixed first quarter with streaming subscriber growth and profit, but anticipated revenue decline from the film studio, which improved in Q2 [1] - The company ended March with 122.3 million global streaming subscribers, an increase of 5.3 million from Q4, and streaming revenue reached $339 million [2] - Content revenues fell by 25% due to lower theatrical performance, with a notably weak box office [3] Group 2 - Total revenues were approximately $9 billion, reflecting a 10% decline, while the net loss was about $500 million, which included $1.6 billion in pre-tax acquisition-related amortization and restructuring expenses [4]

Warner Bros. Discovery Reports First-Quarter 2025 Results | | | | | Three Months Ended March 31, | | | | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | 2024 | % Change | | | $ in millions | | | | | Reported | Ex-FX(") | | Distribution | $ | 4,886 | S | 4,985 | (2)% | (1)% | | Advertising | | 1,980 | | 2,148 | (8)% | (8)% | | Content | | 1,866 | | 2,558 | (27)% | (25)% | | Other | | 247 | | 267 | (7)% | (6)% | | Total revenues | A | 8,979 | S | 9,958 | (10)% | (9)% | | Net income (loss) available t ...

Financial Results - Warner Bros. Discovery, Inc. reported financial results for the quarter ended March 31, 2025 [1] - A conference call to discuss the results was scheduled for today at 8:30 a.m. ET [2] Conference Call Details - A telephone replay of the call will be available approximately two hours after the completion of the call until May 15, 2025 [3] - The replay can be accessed via phone using specific numbers and a passcode [3] Company Overview - Warner Bros. Discovery is a leading global media and entertainment company with a diverse portfolio of branded content across various platforms [4] - The company operates in over 220 countries and territories, offering content in 50 languages [4] - Key brands include Discovery Channel, Max, CNN, HBO, and many others [4]

Core Viewpoint - The announcement by Trump to impose a 100% tariff on films produced abroad and entering the U.S. is aimed at protecting the domestic film industry, citing national security concerns and the need to combat excessive foreign influence in media [2][3]. Group 1: Impact on Hollywood - Following the tariff announcement, stock prices of major Hollywood studios dropped significantly, with Paramount down 2.2%, Disney 2.4%, Netflix 3.3%, and Warner Bros. 4.2% [3]. - The U.S. film industry has been gradually moving production overseas due to high labor costs, particularly in California, where Hollywood is located [5][8]. - The 2023 strike in Hollywood highlighted the industry's reliance on labor, with discussions around job losses due to the rise of artificial intelligence [5][24]. Group 2: Global Film Production Trends - As of October 2024, 120 countries and regions have implemented film production incentive policies to attract projects, benefiting from increased investment and job creation [11]. - Countries like Spain and Iceland have reported high returns on investment for film incentives, with Spain achieving a return index of 9 from 2019 to 2022 [12]. - Since 2022, U.S. film production has decreased by 26%, while global film production has surged, with a 34% year-on-year growth in the first quarter of 2025 [13]. Group 3: Economic Implications - The cost savings from relocating film projects can range from 20% to 40%, prompting many major productions to move overseas [22][23]. - Upcoming Hollywood films, such as "Mission: Impossible 8" and "Avatar 3," are being produced in countries like the UK and New Zealand, respectively [23]. - The shift in production has resulted in a significant decline in job opportunities for U.S. film industry workers, with a 25% reduction in employment over the past three years [24]. Group 4: Political Context - Trump's policies appear to be more about political maneuvering against Hollywood, which has historically opposed him, rather than genuine concern for the industry [25][28]. - The imposition of tariffs may provoke retaliatory measures from other countries, potentially harming the U.S. film industry's global standing [31][35]. - The announcement of the tariff was quickly followed by a statement from the White House indicating that the policy was not finalized, reflecting the uncertainty surrounding Trump's trade strategies [37].

灾难性打击再次袭击好莱坞。 当地时间周日（5月4日），习惯"推特治国、随心所欲"的美国总统特朗普在社交平台上发帖称，他授权美国商务部和美国贸易代表立即启动程 序，对所有在外国制作并进入美国的电影征收100%的关税。 "美国电影业正在急速衰亡。其他国家正提供各种优惠，试图将我们的电影人和制片公司从美国挖走。好莱坞和美国其他许多地区正在遭受重创。 这是其他国家的协同行动，构成国家安全威胁，更是一种信息战和宣传战！因此，我授权商务部与美国贸易代表，立即对所有境外制作的要在我 们国家上映的电影征收100%关税。我们要让电影重新变成美国制造！" 当地时间周一，影视媒体股集体下跌，奈飞(NASDAQ:NFLX)下跌4.55%，Lions Gate Entertainment下跌8.5%，华纳兄弟探索公司(NASDAQ:WBD) 下滑2.6%，华特迪士尼(NYSE:DIS)下跌1.7%，Imax下跌2%。美国多个行业协会联名致信国会，呼吁审慎评估该政策的经济与法律后果。显然， 加关税不会"让好莱坞再次伟大"，而是起到反效果。此举可能会大幅增加好莱坞制片厂的成本，并引发全球娱乐产业的大震荡。 《阿凡达3：火与烬》全程在新西兰 ...

Core Viewpoint - The announcement by President Trump to impose tariffs of up to 100% on films produced overseas has sparked widespread criticism and concern regarding its potential impact on the U.S. film industry and its global competitiveness [1] Industry Impact - The proposed tariffs are expected to significantly increase production costs for major U.S. film companies, which could undermine their competitiveness in the global market [1] - Major Hollywood companies such as Netflix, Disney, Warner Bros, and Paramount experienced stock price declines of over 2% following the announcement, indicating immediate market reaction and concern [1] Expert Opinions - Industry experts argue that while the policy is framed as a measure to "protect American films," it may actually threaten the collaborative foundation that the U.S. film industry relies on for survival, potentially leading to job losses [1] - Multiple industry associations in the U.S. are jointly urging Congress to carefully assess the economic and legal implications of the proposed tariffs [1]

白宫称尚未就电影关税做出最终决定。 据央视新闻客户端消息，当地时间5月5日，白宫表示，尚未就电影关税做出"最终"决定。 白宫发言人库什·德赛表示，尽管尚未做出最终决定，但政府正在探索所有方案以履行特朗普的指示。 当地时间5月4日，美国总统特朗普在社交媒体上发文称，他授权美国商务部和美国贸易代表立即启动程序，对所有在外国制作并进入美国的电影征收100%的关税， 希望"再次拥有美国制作的电影"。特朗普称，美国电影业正在迅速消亡，好莱坞正在被美国电影人和电影公司赴海外工作的趋势"摧毁"，这对美国构成"国家安全威 胁"。 受此影响，当地时间5月5日，美股流媒体股全线大跌，奈飞、华纳兄弟探索一度跌超4%，收盘跌幅有所收窄，奈飞、华纳兄弟探索收跌近2%，派拉蒙全球收跌超 1.5%，迪士尼收跌约0.4%。 对于特朗普表示将对进口电影征100%关税，《纽约时报》4日报道指出，关税措施可能适得其反，伤害美国本土电影，因为许多美国大型电影公司为了降低成本或 获得税收优惠，常常在海外拍摄或进行后期制作。新关税政策将导致这些公司面临更高成本，可能损害它们的全球竞争力。 好莱坞行业媒体报道说，近年不少美国电影公司前往英国、澳大利亚、加 ...

Core Viewpoint - President Trump's threats of tariffs on foreign-produced movies could significantly impact the American movie industry, which he claims is "dying" due to incentives offered by other countries to filmmakers [2][4]. Industry Impact - Trump's comments have created uncertainty in the movie industry, particularly for major companies like Walt Disney Co, which generates billions at the box office annually [1][4]. - The movie sector's performance may contradict Trump's claims, as the box office is projected to increase by 15.8% year-over-year in 2025, potentially benefiting companies like AMC Entertainment and Cinemark Holdings [3]. - Tariffs could slow down the movie theater sector and affect stock prices of major studios such as Disney, Paramount Global, and Warner Bros. Discovery, as well as streaming services like Netflix, which produces many series outside the U.S. [4][5]. Tariff Details - Trump has authorized the Department of Commerce to begin the process of instituting a 100% tariff on movies produced in foreign lands, labeling it a "national security threat" [2][6]. - The vagueness of Trump's comments raises questions about how tariffs would apply to films with foreign filming locations but American production credits [7][9]. Examples and Concerns - The upcoming Paramount film "Mission: Impossible – The Final Reckoning," filmed primarily in the U.K., may serve as an early example of how tariffs could affect the industry [7][8]. - Industry veterans express concerns that such tariffs could harm the sector significantly, with some suggesting that it could lead to the collapse of independent distributors [10][11]. State Incentives - In contrast to Trump's tariff threats, California Governor Gavin Newsom is advocating for $750 million in annual incentives for content filmed in the state, aiming to support the local industry [10].