Warner Bros. Discovery, Inc. - Series A · NASDAQ:WBD
Warner Bros. Discovery, Inc. - Series A — Warner Bros. Discovery — Q1 2023 Earnings Presentation
19 slides from Warner Bros. Discovery, Inc. - Series A's earnings presentation, May 5, 2023
Slide 1: 1st Quarter 2023 Earnings Presentation
1st Quarter 2023 Earnings Presentation May 5, 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: Adjusted EBITDA Improvement Driven by Operational and Transformation Initiatives
Adjusted EBITDA Improvement Driven by Operational and Transformation Initiatives 1st Quarter 2023 Financial Results (In Billions) REVENUE ADJ. EBITDA(2)(*) Elims $2.6 12% (5)% Elims $11.4 $2.4 $10.7 Revenue: (3)% ex-FX & 2022 Olympics(3)(*) 1Q22 1Q23 1Q22 1Q23 Pro forma Actual Pro forma Actual combi
Slide 4: Continued Sequential Improvement in Y/Y Adjusted EBITDA Trends
Continued Sequential Improvement in Y/Y Adjusted EBITDA Trends Despite Challenging Advertising Market Environment Y/Y Ex-FX(*) Growth Rates 12% (2%) (8%) (31%) 2Q22 3Q22 4Q22 1Q23 Note: $ shown incl. FX impact; growth rates shown on an ex-FX basis(*) (*) A non-GAAP financial measure; see Appendix fo
Slide 5: Reported 1Q22 Discovery & 1Q23 WBD Free Cash Flow
Reported 1Q22 Discovery & 1Q23 WBD Free Cash Flow (In Billions) REPORTED FCF(5)(*) $0.2 Factors impacting comparability: • Negative standalone WarnerMedia FCF • Merger bonds semi-annual interest payments • Restructuring and integration expenses $(0.9) 1Q22 1Q23 Standalone WBD Discovery Note: $ shown
Slide 6: Studios: Hogwarts Legacy Success Offset by Lower TV Licensing, Theatrical, and Home Entertainment
Studios: Hogwarts Legacy Success Offset by Lower TV Licensing, Theatrical, and Home Entertainment 1st Quarter 2023 Financial Results (In Billions) REVENUE Revenues: (7)% vs. prior year quarter $3.5 (7)% $3.2 Games – release of Hogwarts Legacy TV licensing – comp from large TV licensing deals in prio
Slide 7: Networks: Impacted by Ongoing Macro Headwinds and Olympics Comp
Networks: Impacted by Ongoing Macro Headwinds and Olympics Comp 1st Quarter 2023 Financial Results (In Billions) REVENUE Revenues: (10)% or (7)% ex-Olympics(*) vs. prior year quarter $6.3 Distribution: (3)% vs. prior year quarter (10)% $5.6 Rate increases in the U.S. Lower U.S. pay-TV subscribers Ad
Slide 8: DTC: Swing to Profitability in Q1 & Expect U.S. Profitability for 2023
DTC: Swing to Profitability in Q1 & Expect U.S. Profitability for 2023 1st Quarter 2023 Financial Results (In Billions) REVENUE Total DTC subscribers(6): 97.6M (+1.6M net adds vs. Q4 2022) $2.5 (1)% $2.5 Revenues: (1)% vs. prior year quarter Distribution: (1)% vs. prior year quarter Global HBO Max r
Slide 9: Q1 Debt and Maturities
Q1 Debt and Maturities (As of March 31, 2023; In Billions) DEBT STRUCTURE DEBT MATURITIES BY YEAR 6% 25% < 3 years Average cost Average Fixed $49.5 of debt 3-5 years 44% maturity of Variable Gross Debt(7)(*) 5-10 years 4.6% 13% 14+ years > 10 years 94% 17% Deleveraging Plans • Net debt was $46.8B(8)
Slide 10: Key Guidance & Financial Objectives
Key Guidance & Financial Objectives Adjusted Free Cash Flow(*) Synergy Capture Leverage EBITDA(*) Low to mid 20% Y/Y 1H23 cash neutral $2B+ incremental Comfortably below 4.0x net growth in 2023 leverage(*) by end of 2023 & & & & U.S. DTC profitability in 33 – 50% full-year 2023 Total synergy estimat
Slide 11: 1st Quarter 2023 Earnings Presentation
1st Quarter 2023 Earnings Presentation May 5, 2023
Slide 12: Appendix
Appendix WARNER BROS. DISCOVERY
Slide 13: Notes
Notes Numbers presented in the following materials 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 t
Slide 14: Notes – cont.
Notes – cont. (3) Revenues Excluding 2022 Winter Olympic Games: The Company defines revenues excluding the 2022 Winter Olympic Games as total revenues less revenues from the 2022 Winter Olympic Games. The Company may exclude revenues from the 2022 Winter Olympic Games at the consolidated level, segm
Slide 15: Notes – cont.
Notes – cont. (6) Direct-to-Consumer (“DTC”) Subscriber: The Company defines a “DTC Subscription” as: (i) a retail subscription to discovery+, HBO or HBO Max for which we have recognized subscription revenue, whether directly or through a third party, from a direct-to-consumer platform;(ii) a wholes
Slide 16: Reconciliation of Revenues Excluding 2022 Winter Olympic Games
Reconciliation of Revenues Excluding 2022 Winter Olympic Games (2022 Pro forma figures, 2023 Actual; In Millions) 3 Months Ending % Change Combined Company Pro Forma Pro Forma Revenues 3/31/22 3/31/23 Combined Combined (Actual) (ex-FX)(*) Total revenues $11,441 $10,700 (6)% (5)% 2022 Winter Olympic
Slide 17: Reconciliation of Net Income to Adj. EBITDA – Q1 2022 & 2023
Reconciliation of Net Income to Adj. EBITDA – Q1 2022 & 2023 (2022 Pro forma figures, 2023 Actual; In Millions) 3 Months Ending Pro Forma Actual 3/31/22 3/31/23 Net (loss) available to Warner Bros. $(299) $(1,069) Discovery, Inc. Net income attributable to 19 9 noncontrolling interests Net (loss) (2
Slide 18: Reconciliation of Reported Free Cash Flow – Q1 2022 & 2023
Reconciliation of Reported Free Cash Flow – Q1 2022 & 2023 (Reported figures; In Millions) 3 Months Ending 3/31/22 3/31/23 Reported Free Cash Flow: Cash provided by (used for) operating $323 $(631) activities Less: Purchases of property and (85) (299) equipment Reported Free Cash Flow(*) $238 $(930)
Slide 19: 1st Quarter 2023 Earnings Presentation
1st Quarter 2023 Earnings Presentation May 5, 2023
Warner Bros. Discovery — Q1 2023 Earnings Presentation on 6ix