Warner Bros. Discovery, Inc. - Series A · NASDAQ:WBD
Warner Bros. Discovery, Inc. - Series A — Warner Bros. Discovery — Q4 2023 Earnings Presentation
20 slides from Warner Bros. Discovery, Inc. - Series A's earnings presentation, Feb 23, 2024
Slide 1: 4th Quarter 2023 Earnings Presentation
4th Quarter 2023 Earnings Presentation February 23, 2024
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: Continued FCF Generation Despite Challenging Operating Environment
Continued FCF Generation Despite Challenging Operating Environment 4th Quarter 2023 Financial Results (In Billions) REVENUE ADJ. EBITDA(1)(*) REPORTED FCF(2)(*) Elims $2.6 $3.3 (7)% Elims (5)% $2.5 $11.0 +33% $10.3 $2.5 4Q22 4Q23 4Q22 4Q23 4Q22 4Q23 Note: $ shown incl. FX impact; growth rates shown
Slide 4: Healthy FY23 EBITDA and FCF Momentum
Healthy FY23 EBITDA and FCF Momentum Full Year 2023 Financial Results (In Billions) REVENUE ADJ. EBITDA(*) REPORTED FCF(*) $10.2 $6.2 Elims Elims +12% (4)% $9.2 $43.1 $41.3 $3.3 FY'22 FY'23 FY'22 FY'23 FY'22 FY'23 Pro forma Actual Pro forma Actual combined(4) combined Note: $ shown incl. FX impact;
Slide 5: Studios: Film & Games Contribution Offset by Strike-Impacted TV Revenues
Studios: Film & Games Contribution Offset by Strike-Impacted TV Revenues 4th Quarter 2023 Financial Results (In Billions) REVENUE Revenues: (18)% vs. prior year quarter $3.8 (18)% $3.2 Theatrical – Greater number of titles released in the current year quarter…though inconsistent performance negative
Slide 6: Networks: US Revenue Challenges Partially Offset by Pockets of International Strength and Continued Opex Savings
Networks: US Revenue Challenges Partially Offset by Pockets of International Strength and Continued Opex Savings 4th Quarter 2023 Financial Results (In Billions) REVENUE Revenues: (8)% or (7)% ex-AT&T SportsNet(5)(*) vs. prior year quarter $5.5 (8)% $5.0 Distribution: (3)% or flat ex-AT&T SportsNet(
Slide 7: DTC: Subscriber-related Revenue Acceleration and Opex Efficiencies Drove EBITDA Improvement
DTC: Subscriber-related Revenue Acceleration and Opex Efficiencies Drove EBITDA Improvement 4th Quarter 2023 Financial Results (In Billions) REVENUE Total DTC subscribers(7): 97.7M (+0.5M net adds excl. 1.3M $2.5 +3% $2.5 subscribers from BluTV acquisition) Global ARPU(8): $7.94, +7% growth Revenues
Slide 8: Repaid $1.2B of Debt in Q4
Repaid $1.2B of Debt in Q4 (As of December 31, 2023; In Billions) • Net debt was $39.9B(9)(*) at the end of Q4 with total cash balance of $4.3B • Repaid $5.4B of debt during 2023 bringing total debt repaid since the closing of the merger to $12.4B 2023 Quarterly Debt Repayment Cadence 2023 Gross(10)
Slide 9: Long-dated, Low-interest Debt Stack With Limited Near-term Maturities
Long-dated, Low-interest Debt Stack With Limited Near-term Maturities (As of December 31, 2023; In Billions) Current Debt Maturity Profile $7.0 $5.1 $4.7 $4.8 $3.1 $3.0 $2.3 $2.3 $1.8 $1.8 $1.7 $1.0 $1.3 $0.5 $0.7 $0.5 $0.8 $1.0 $0.2 $0.2 $0.1 $0.0 $0.0 '24 '25 '26 '27 '28 '29 '30 '31 '32 '36 '37 '4
Slide 10: 4th Quarter 2023 Earnings Presentation
4th Quarter 2023 Earnings Presentation February 23, 2024
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) Adjusted EBITDA: The Company evaluates the operating performance of its operating segments based on financial measures such as revenues
Slide 13: Notes – cont.
Notes – cont. (4) Pro Forma Combined Financial Information: The unaudited pro forma combined financial information in this earnings presentation presents the combined results of the Company and the WarnerMedia business as if the transaction whereby the Company acquired the WarnerMedia business (the
Slide 14: Notes – cont.
Notes – cont. (7) Direct-to-Consumer (“DTC”) Subscriber: The Company defines a “DTC Subscription” as: (i) a retail subscription to discovery+, HBO, HBO Max, Max, or a Premium Sports Product (defined below) for which we have recognized subscription revenue, whether directly or through a third party,
Slide 15: Notes – cont.
Notes – cont. (9) Net debt:. The Company defines net debt as the calculation where cash, cash equivalents, and restricted cash is subtracted from gross debt (as defined below). The Company believes this measure is relevant to investors as it is a financial measure frequently used in evaluating a com
Slide 16: Reconciliation of Net Income to Adj. EBITDA – Q4, Full-year 2022 & 2023
Reconciliation of Net Income to Adj. EBITDA – Q4, Full-year 2022 & 2023 (In Millions) 3 Months Ending 12 Months Ending Pro Forma Actual Actual Actual Combined 12/31/22 12/31/23 12/31/22 12/31/23 Net (loss) available to Warner Bros. $(2,101) $(400) $(5,359) $(3,126) Discovery, Inc. Net income attribu
Slide 17: Reconciliation of Reported Free Cash Flow – Q4, Full-year 2022 & 2023
Reconciliation of Reported Free Cash Flow – Q4, Full-year 2022 & 2023 (Reported figures; In Millions) 3 Months Ending 12 Months Ending 12/31/22 12/31/23 12/31/22 12/31/23 Reported Free Cash Flow: Cash provided by (used $2,846 $3,578 $4,304 $7,477 for) operating activities Less: Purchases of (364) (2
Slide 18: Networks Segment: Reconciliation of AT&T SportsNet Business Exit
Networks Segment: Reconciliation of AT&T SportsNet Business Exit (Reported figures; In Millions) 3 Months Ending % Change Total Networks Revenues 12/31/22 12/31/23 Actual Ex-FX(*) Total revenues $5,519 $5,037 (9)% (8)% AT&T SportsNets revenues 89 12 (87)% (87)% Total revenues excluding AT&T SportsNe
Slide 19: Networks Segment: Reconciliation of AT&T SportsNet Business Exit
Networks Segment: Reconciliation of AT&T SportsNet Business Exit (Reported figures; In Millions) 3 Months Ending % Change Networks Distribution Revenues 12/31/22 12/31/23 Actual Ex-FX(*) Distributions revenues $2,874 $2,752 (4)% (3)% AT&T SportsNets distribution revenues 73 10 (86)% (86)% Total dist
Slide 20: 4th Quarter 2023 Earnings Presentation
4th Quarter 2023 Earnings Presentation February 23, 2024
Warner Bros. Discovery — Q4 2023 Earnings Presentation on 6ix