Financial Performance - Q3 2024 total revenues were $9.6 billion, a 3% decrease compared to the prior year quarter[3]. - Net income available to Warner Bros. Discovery, Inc. was $0.1 billion, including $1.6 billion of pre-tax acquisition-related amortization and restructuring expenses[3]. - Q3 total Adjusted EBITDA was $2.4 billion, an 18% decrease compared to the prior year quarter[3]. - Total revenues for Q3 2024 were $9,623 million, a decrease of 4% compared to $9,979 million in Q3 2023[34]. - Operating income for Q3 2024 was $281 million, compared to $97 million in Q3 2023, indicating a significant improvement[34]. - Net income available to Warner Bros. Discovery, Inc. was $135 million in Q3 2024, a recovery from a net loss of $417 million in Q3 2023[34]. - The company reported a net loss of $10,842 million for the nine months ended September 30, 2024, compared to a net loss of $2,687 million for the same period in 2023[36]. - Adjusted EBITDA for Q3 2024 was $2,413 million, down from $2,969 million in Q3 2023, representing a decrease of 19%[40]. Subscriber Growth and Direct-to-Consumer (DTC) Performance - Global Direct-to-Consumer (DTC) subscribers reached 110.5 million, with an increase of 7.2 million subscribers in Q3, marking the largest quarterly growth since the launch of Max[3][16]. - Total DTC subscribers reached 110.5 million, up from 103.3 million in the previous quarter[20]. - DTC revenues increased 9% ex-FX to $2,634 million compared to the prior year quarter[15][16]. - DTC Adjusted EBITDA reached $289 million, a $178 million increase year-over-year, despite a $41 million loss from the broadcast of the Olympics in Europe[19]. - Global DTC ARPU increased by 1% ex-FX to $7.84, supported by domestic ad-tier subscriber growth and higher pricing[17]. Revenue Breakdown - Studios revenues decreased 17% ex-FX to $2,680 million compared to the prior year quarter[6][7]. - Content revenue decreased 18% ex-FX, with theatrical revenue down 40% ex-FX due to lower box office performance[7][8]. - Networks revenues increased 3% ex-FX to $5,010 million compared to the prior year quarter[13]. - Distribution revenue increased by 8% ex-FX, driven by a 15% increase in subscribers and higher pricing following the launch of Max in Latin America and Europe[17]. - Advertising revenue surged by 51% ex-FX, primarily due to an increase in domestic ad-lite subscribers[17]. - Distribution revenues for Q3 2024 were $2,598 million, a decline of 8% from $2,833 million in Q3 2023[37]. - Content revenue decreased by 11% ex-FX, mainly due to fewer third-party licensing deals[17]. Expenses and Cash Flow - DTC operating expenses rose by 1% ex-FX to $2,345 million, with SG&A increasing by 27% ex-FX due to higher overhead and marketing expenses[18]. - Total operating expenses for Q3 2024 were $2,895 million, a 17% increase from $2,472 million in Q3 2023[38]. - Cost of revenues for Q3 2024 was $2,185 million, up 21% from $1,800 million in Q3 2023[38]. - Free cash flow decreased by 69% to $632 million from $2,059 million, primarily due to higher net content investment and lower operating profits[26]. - The company experienced a cash outflow from operating activities of $2,660 million for the nine months ended September 30, 2024, down from $3,899 million in the same period of 2023[36]. Debt and Leverage - As of September 30, 2024, the company had $3.5 billion in cash and $40.7 billion in gross debt, with a net leverage ratio of 4.2x[24]. - The company repaid or repurchased $0.9 billion of debt in Q3 2024[24]. - Gross debt is reported at $40.7 billion, which includes total debt of $40.2 billion and finance leases of $452 million[47]. - Net leverage is calculated as net debt of $37.2 billion divided by the last four quarters' Adjusted EBITDA of $8,781 million, resulting in a net leverage ratio of approximately 4.23[48]. Assets and Liabilities - Total assets decreased to $106,333 million as of September 30, 2024, down from $122,757 million at the end of 2023[35]. - Cash and cash equivalents at the end of Q3 2024 were $3,490 million, compared to $2,430 million at the end of Q3 2023[36]. - Total liabilities decreased to $70,159 million as of September 30, 2024, down from $76,285 million at the end of 2023[35]. Strategic Initiatives - Warner Bros. Discovery announced a multi-year renewal of the Charter carriage agreement, enhancing the distribution of Max across Spectrum TV Select packages[1]. - The company aims to enhance its market position through strategic investments and potential acquisitions, focusing on expanding its direct-to-consumer offerings[50].

Core Viewpoint - Warner Bros. Discovery (WBD) is expected to report third-quarter 2024 results on November 7, with a consensus estimate for a loss of 5 cents per share and revenues projected at $9.98 billion, indicating no year-over-year change [1] Group 1: Financial Performance Expectations - The advertising revenues, which account for over 50% of WBD's income, are anticipated to face challenges due to decreased audience engagement and the company's exit from the AT&T SportsNet business [2][3] - Advertising revenues declined by 3.5% year over year to $2.43 billion in the second quarter, with both domestic and international markets showing signs of weakness [3] - Financial pressures may lead to margin compression due to losses from high-budget film productions and significant debt obligations from the WarnerMedia-Discovery merger [4] Group 2: Direct-to-Consumer Segment - The Direct-to-Consumer (DTC) segment shows positive indicators, with 103.3 million global DTC subscribers reported in the second quarter of 2024, reflecting a sequential increase of 3.6 million [5] - The global DTC Average Revenue Per User (ARPU) grew by 4% (excluding currency effects) to $8.00, driven by domestic ad tier expansion and changes in distribution channels, although this was partially offset by growth in lower-ARPU international markets [5] - The consensus estimate for total DTC subscribers for the third quarter is pegged at 107.663 million, indicating a year-over-year increase of 13.2% [8] Group 3: Strategic Developments - A significant development is the strategic partnership with Charter Communications, integrating Max (Ad Lite) and Discovery+ content into Spectrum TV Select packages, which may support viewership growth [7] - The company's multiplatform content distribution strategy, leveraging both linear and digital platforms, could help counterbalance the challenges faced in advertising revenues [6]

Warner Bros. Discovery, Inc. (NASDAQ: WBD ) has demonstrated resilience in the streaming market, with steady growth in subscribers and ARPU (average revenue per user) pointing to its adaptability in a competitive landscape. This stable growth and attractive valuation metrics suggest potential Yiannis Zourmpanos, founder of Yiazou IQ, an AI-driven stock research platform providing all-in-one stock reports. Experience: Previously worked at Deloitte and KPMG in external/internal auditing and consulting. Educat ...

Warner Bros. Discovery (WBD) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Shares of this operator of cable TV channels such as TLC and Animal Planet have returned -5.1% over the past month versus the Zacks S&P 500 composite's +4.5% change. The Zacks Broadcast Radio and Television industry, to which Warner Bros. Discovery belongs, has gained 8.4% over this period. Now the key ...

The most recent trading session ended with Warner Bros. Discovery (WBD) standing at $7.53, reflecting a -0.13% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.61%. Meanwhile, the Dow experienced a rise of 0.97%, and the technology-dominated Nasdaq saw an increase of 0.33%. Shares of the operator of cable TV channels such as TLC and Animal Planet witnessed a loss of 1.57% over the previous month, trailing the performance of the Consumer Discretio ...

Warner Bros. Discovery's (WBD) rich partner base that includes Alphabet (GOOGL) , Charter Communications (CHTR) , Esports World Cup Foundation, SF Studios, Stan Sport and others, bodes well for its prospects. Partnerships with these companies are helping WBD to offer solid content to its user base that eventually drives top-line growth. For instance, in partnership with Alphabet's Google Cloud, WBD announced the implementation of AIpowered captioning solution on Tuesday. It recently inked a distribution agr ...

Solution utilizes Google Cloud's Vertex AI to dramatically improve captioning efficiency, cutting production time and costs NEW YORK and SUNNYVALE, Calif., Sept. 24, 2024 /PRNewswire/ -- Warner Bros. Discovery and Google Cloud today announced the deployment of a new, AI-powered captioning solution (referred to internally as "caption AI") in the United States that utilizes Google Cloud's Vertex AI platform. Initially being applied to unscripted programming, this captioning solution's innovative technology is ...

Warner Bros. Discovery WBD is one of the world's biggest names when it comes to entertainment. Although it has overall been a bad year for the company's stock price, positive news has allowed shares to recover. On September 12th, the company announced a multi-year deal with one of the largest U.S. cable TV companies, Charter Communications CHTR, also known as Spectrum. Since the announcement, shares have been up 21%. Let's dive deeper into what the announcement means for Warner Bros.'s long-term future and ...

Warner Bros. Discovery (WBD) shares have dipped 27.6% year to date, underperforming the broader Zacks Consumer Discretionary sector's return of 1.8%. WBD shares have also lagged the Zacks Broadcast Radio and Television industry's growth of 23.5% and its peers Netflix (NFLX) , Fox (FOXA) and Roku (ROKU) . Over the same time frame, shares of NFLX and FOXA have gained 44% and 35.6%, respectively, while shares of Roku fell 17%. In the first half of 2024, WBD revenues fell 7.1% year over year to $19.6 billion du ...

Warner Bros. Discovery (WBD) closed the most recent trading day at $8.24, moving -1.9% from the previous trading session. This change lagged the S&P 500's 0.19% loss on the day. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq decreased by 0.36%. Heading into today, shares of the operator of cable TV channels such as TLC and Animal Planet had gained 12% over the past month, outpacing the Consumer Discretionary sector's gain of 2.68% and the S&P 500's gain of 2.06% in ...