Warner Bros. Discovery, Inc. - Series A · NASDAQ:WBD
Warner Bros. Discovery, Inc. - Series A — Warner Bros. Discovery — Q2 2023 Earnings Presentation
17 slides from Warner Bros. Discovery, Inc. - Series A's earnings presentation, Aug 3, 2023
Slide 1: 2nd Quarter 2023 Earnings Presentation
2nd Quarter 2023 Earnings Presentation August 3, 2023
Slide 2: Important Information
Important Information Cautionary Statement Concerning Forward-Looking Statements Information set forth in this communication contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking sta
Slide 3: Operational and Transformation Initiatives Driving Strong Adjusted EBITDA
Operational and Transformation Initiatives Driving Strong Adjusted EBITDA 2nd Quarter 2023 Financial Results (In Billions) REVENUE ADJ. EBITDA(2)(*) REPORTED FCF(4)(*) $2.1 $1.7 Elims (4)% +23% Elims $1.8 $10.8 $10.4 $0.8 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 Pro forma Actual Pro forma Actual combined(1) co
Slide 4: Continued Improvement in Y/Y Adjusted EBITDA Trends
Continued Improvement in Y/Y Adjusted EBITDA Trends (In Millions; Y/Y Ex-FX(*) Growth Rates) $383 $230 23% 12% (8%) (2%) $(138) (31%) $(244) $(734) 2Q22 3Q22 4Q22 1Q23 2Q23 Note: $ shown incl. FX impact; growth rates shown on an ex-FX basis(*) (*) A non-GAAP financial measure; see Appendix for addit
Slide 5: Studios: Inconsistent Performance
Studios: Inconsistent Performance 2nd Quarter 2023 Financial Results (In Billions) REVENUE Revenues: (24)% vs. prior year quarter $3.4 (24)% $2.6 TV – timing of production (partly strike-driven) and fewer series sold externally and inter-company Games – comp vs. LEGO Star Wars: The Skywalker Saga Ho
Slide 6: Networks: Impacted by Macro Headwinds and Sports Timing
Networks: Impacted by Macro Headwinds and Sports Timing 2nd Quarter 2023 Financial Results (In Billions) REVENUE Revenues: (5)% vs. prior year quarter $6.1 (5)% $5.8 Distribution: (1)% Rate increases in the U.S. Lower U.S. pay-TV subscribers Advertising: (13)% 2Q22 2Q23 Pro forma Actual General ente
Slide 7: DTC: U.S. Launch of Max and Growth Across All Revenue Streams
DTC: U.S. Launch of Max and Growth Across All Revenue Streams 2nd Quarter 2023 Financial Results (In Billions) REVENUE Total DTC subscribers(5): 95.8M (-1.8M net adds vs. Q1 2023) +14% $2.7 $2.4 Global ARPU(6): $7.71, 2% growth Revenues: +14% vs. prior year quarter Distribution: +2% Global Max/HBO M
Slide 8: Repaid $1.6B of Debt in Q2 & Continuing to De-lever in Q3
Repaid $1.6B of Debt in Q2 & Continuing to De-lever in Q3 (As of June 30, 2023; In Billions) DEBT STRUCTURE DEBT MATURITIES BY YEAR 3% 23% < 3 years Average cost Average Fixed $47.8 of debt 3-5 years 46% maturity of Variable Gross Debt(6)(*) 5-10 years 4.6% 14% 14+ years > 10 years 97% 18% Deleverag
Slide 9: Key Guidance & Financial Objectives
Key Guidance & Financial Objectives Adjusted Free Cash Flow(*) Synergy Capture Leverage EBITDA(*) Low end of Q3: ~$1.7B Total synergy estimate of Comfortably below 4.0x net $11 - $11.5B range $5B+ leverage(*) by end of 2023 & & & & 2023: U.S. DTC profitable 2023: $4.5 – $5.0B Cost to achieve at high
Slide 10: 2nd Quarter 2023 Earnings Presentation
2nd Quarter 2023 Earnings Presentation August 3, 2023
Slide 11: Appendix
Appendix WARNER BROS. DISCOVERY
Slide 12: Notes
Notes Numbers presented in this presentation are on a rounded basis using actual amounts. Minor differences in totals and percentages may exist due to rounding. (1) Pro Forma Combined Financial Information: The unaudited pro forma combined financial information in this press release presents the com
Slide 13: Notes – cont.
Notes – cont. (3) Foreign Exchange Impacting Comparability: In addition to the Merger (as previously defined), the impact of exchange rates on our business is an important factor in understanding period-to-period comparisons of our results. For example, our international revenues are favorably impac
Slide 14: Notes – cont.
Notes – cont. (6) ARPU: The Company defines DTC Average Revenue Per User ("ARPU") as total subscription revenue plus net advertising revenue for the period divided by the daily-average number of paying subscribers for the period. Where daily values are not available, the sum of beginning of period a
Slide 15: Reconciliation of Net Income to Adj. EBITDA – Q2 2022 & 2023
Reconciliation of Net Income to Adj. EBITDA – Q2 2022 & 2023 (2022 Pro forma figures, 2023 Actual; In Millions) 3 Months Ending Pro Forma Actual 6/30/22 6/30/23 Net (loss) available to Warner Bros. Discovery, Inc. $(1,857) $(1,240) Net income attributable to noncontrolling interests 11 20 Net (loss)
Slide 16: Reconciliation of Reported Free Cash Flow – Q2 2022 & 2023
Reconciliation of Reported Free Cash Flow – Q2 2022 & 2023 (Reported figures; In Millions) 3 Months Ending 6/30/22 6/30/23 Reported Free Cash Flow: Cash provided by (used for) operating $1,011 $2,014 activities Less: Purchases of property and (222) (292) equipment Reported Free Cash Flow(*) $789 $1,
Slide 17: 2nd Quarter 2023 Earnings Presentation
2nd Quarter 2023 Earnings Presentation August 3, 2023
Warner Bros. Discovery — Q2 2023 Earnings Presentation on 6ix