Warner Bros. Discovery(US:WBD)2025-05-08 18:33Revenue Performance - Total revenues decreased by 10% to $8,979 million for the three months ended March 31, 2025, compared to $9,958 million in the same period of 2024[161]. - Total revenues for the three months ended March 31, 2025, decreased by 10% to $8,979 million compared to $9,958 million in 2024[180]. - Total revenues for the three months ended March 31, 2025, decreased by 7% to $4.774 billion compared to $5.125 billion in 2024[207]. Distribution and Advertising Revenue - Distribution revenue declined by 1% primarily due to a 9% decrease in domestic linear subscribers, partially offset by a 23% increase in Streaming subscribers[163]. - Distribution revenue rose by 8%, driven by a 23% increase in subscribers, despite lower global distribution ARPU[189]. - Advertising revenue fell by 8%, mainly due to a 27% decline in audience for domestic linear networks[164]. - Advertising revenue increased by 35%, attributed to a rise in ad-lite subscribers[190]. - Distribution revenue decreased by 8%, primarily due to a 9% decline in domestic linear subscribers[208]. - Advertising revenue decreased by 11%, driven by a 27% decline in audience for domestic networks[209]. Content Revenue - Content revenue decreased by 25%, driven by a 27% drop in theatrical product revenue and a 48% decrease in games revenue[165]. - Content revenue in the Studios segment decreased by 17% to $2,139 million, mainly due to a 27% drop in theatrical product revenue[200]. - Content revenue increased by 44%, attributed to the timing of third-party licensing deals[209]. Operating Performance - Operating loss improved by 86% to $(37) million compared to $(267) million in the prior year[161]. - The operating loss for the company was $37 million for the three months ended March 31, 2025, compared to an operating loss of $267 million in the prior year[245]. EBITDA Performance - Adjusted EBITDA for the Streaming segment increased significantly to $339 million from $86 million, while Studios segment Adjusted EBITDA rose by 41% to $259 million[178]. - Adjusted EBITDA for the Streaming segment surged to $339 million, a significant increase from $86 million in the prior year[181]. - Adjusted EBITDA for the Studios segment increased by 41% to $259 million, up from $184 million in the previous year[197]. - Global Linear Networks Adjusted EBITDA decreased by 15% to $1,793 million[178]. - Adjusted EBITDA for the Global Linear Networks segment decreased by 14% to $1.793 billion[212]. Cash Flow and Financing - Cash provided by operating activities was $553 million, down from $585 million in the same period last year[228]. - Cash used in financing activities increased to $1.895 billion, primarily due to higher net debt activity[230]. - As of March 31, 2025, the company had $3.9 billion in cash and cash equivalents[218]. - The company entered into a new $1.5 billion 364-day senior unsecured term loan credit facility during the quarter[222]. - The company has a cash balance of $3,868 million, which is expected to be sufficient to fund both short-term and long-term cash needs[232]. Debt and Indebtedness - The company repaid $2,165 million of senior notes due March 2025 and $1,500 million of senior notes due March 2026 during the quarter[170]. - As of March 31, 2025, the company reported total outstanding indebtedness of $37,446 million, with total capacity of $47,314 million[232]. - Noncurrent liabilities were reported at $35,077 million as of March 31, 2025, down from $37,118 million at the end of 2024[238]. Net Loss and Assets - The company experienced a net loss of $285 million for the three months ended March 31, 2025, compared to a net loss of $308 million available to Warner Bros. Discovery, Inc.[238]. - Current assets decreased to $762 million as of March 31, 2025, from $2,194 million as of December 31, 2024[238]. Future Plans and Risks - The company plans to continue significant investments in content creation and acquisition, including sports rights[223]. - The company anticipates that its borrowing costs and access to capital markets may be affected by credit ratings assigned by independent agencies[232]. - The company plans to continue reinvesting some foreign earnings outside the U.S. without immediate need for repatriation[233]. - The company faces various risks including competitive pressure, changes in advertising spending, and uncertainties in product development and market acceptance[248].