Warner Bros. Discovery(WBD) - 2024 Q1 - Quarterly Results

Financial Performance - Total revenues for Q1 2024 were $9,958 million, a 7$(966) million, an improvement of 10% from the prior year[4] - Adjusted EBITDA for Q1 2024 was $2,102 million, a 20$9.958 billion, a decrease of 6.9% compared to $10.700 billion in Q1 2023[32] - The company reported a net loss of$955 million in Q1 2024, compared to a net loss of $1.060 billion in the same quarter of the previous year[32] - Operating loss for Q1 2024 was$267 million, an improvement from an operating loss of $557 million in Q1 2023[32] - Adjusted EBITDA for Q1 2024 was$2,102 million, a decline from $2,611 million in Q1 2023[41] - Net loss available to Warner Bros. Discovery, Inc. for Q1 2024 was$966 million, compared to a loss of $1,069 million in Q1 2023[41] Cash Flow and Debt Management - Free cash flow improved to$390 million, a $1.3 billion increase compared to the prior year quarter[4] - Cash provided by operating activities increased to$585 million in Q1 2024 from a negative $631 million in the prior year quarter, while free cash flow improved to$390 million from a negative $930 million[24] - The company repaid$1.1 billion of debt during Q1 2024 and launched a tender offer to repurchase outstanding debt[6] - As of March 31, 2024, Warner Bros. Discovery had $3.4 billion in cash on hand and$43.2 billion in gross debt, with a net leverage ratio of 4.1x[6] - Gross debt stands at $43.2 billion, which includes total debt of$42.8 billion and finance leases of $325 million[48] - Net leverage is calculated as net debt of$39.2 billion divided by the last four quarters' Adjusted EBITDA of $6,691 million[49] - The average duration of the company's outstanding debt was 15.0 years with an average cost of 4.6$6.0 billion revolving credit facility[6] Revenue Streams - Networks revenues decreased 8% ex-FX to 5,125 million, impacted by the exit of AT&T SportsNet[12] - DTC revenues increased modestly to 2,460 million compared to the prior year quarter[16] - Advertising revenue in the DTC segment increased by 70% ex-FX, driven by higher engagement on Max[16] - Distribution revenues for Q1 2024 were $2.797 billion, down 7$2.995 billion in Q1 2023[39] Subscriber Metrics - Global DTC subscribers reached 99.6 million, an increase of 2.0 million from Q4 2023[16] - The company defines Direct-to-Consumer (DTC) subscribers as those who have recognized subscription revenue, totaling a significant portion of its revenue stream[52] - The average revenue per user (ARPU) for DTC subscriptions is calculated by dividing total subscription revenue plus net advertising revenue by the average number of paying subscribers[57] Operational Highlights - Studios Adjusted EBITDA decreased 70% ex-FX to $184 million compared to the prior year quarter[8] - Warner Bros. Pictures reached$1 billion in both overseas and global box office, marking a strong start to the year[2] - Total operating expenses for Q1 2024 were $3,006 million, a decrease of 9$3,288 million in Q1 2023[40] - Cost of revenues for Q1 2024 was $2,372 million, down 9$2,594 million in Q1 2023[40] - The company reported a restructuring and other charges of 35 million in Q1 2024[41] - The company aims to improve its operating performance by excluding revenues and expenses related to the exit from the AT&T SportsNet business[60] Asset Management - Total assets decreased to 119.819 billion as of March 31, 2024, down from $122.757 billion at the end of 2023[35]