Warner Bros. Discovery, Inc. - Series A · NASDAQ:WBD
Warner Bros. Discovery, Inc. - Series A — Warner Bros. Discovery — Q4 2022 Earnings Presentation
19 slides from Warner Bros. Discovery, Inc. - Series A's earnings presentation, Feb 23, 2023
Slide 1: 4th Quarter 2022 Earnings Presentation
4th Quarter 2022 Earnings Presentation February 23, 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: Achieved 2022 EBITDA and FCF Objectives
Achieved 2022 EBITDA and FCF Objectives Full-year 2022 Financial Results (In Billions) PRO FORMA COMBINED PRO FORMA COMBINED REPORTED FCF(3)(*) REVENUE(1) ADJ. EBITDA(2)(*) $3.3 Elims (3)% Elims $3.0 $45.3 $10.4 (10)% $2.4 $43.1 $9.2 $9.0 - $9.5 FY'21 FY'22 FY'21 FY'22 FY'22 FY'21 FY'22 FY'22 Guidan
Slide 4: Continued Transformation Initiatives Largely Offsetting Macro Headwinds
Continued Transformation Initiatives Largely Offsetting Macro Headwinds 4th Quarter 2022 Financial Results (In Billions) PRO FORMA COMBINED PRO FORMA COMBINED REPORTED FCF(*) REVENUE ADJ. EBITDA(*) $2.5 Elims $2.7 (2)% $2.6 (9)% $12.4 Elims $11.0 $0.8 4Q21 4Q22 4Q21 4Q22 4Q21 4Q22 Note: $ shown incl
Slide 5: Continued Sequential Improvement in Y/Y Adjusted EBITDA Trends in Challenging Market
Continued Sequential Improvement in Y/Y Adjusted EBITDA Trends in Challenging Market Y/Y Ex-FX(*) Growth Rates PRO FORMA COMBINED ADJ. EBITDA(*) (2%) (8%) (31%) 2Q22 3Q22 4Q22 Note: $ shown incl. FX impact; growth rates shown on an ex-FX basis(*) (*) A non-GAAP financial measure; see Appendix for ad
Slide 6: Studios: Y/Y Comparison Impacted By A Large TV Licensing Deal
Studios: Y/Y Comparison Impacted By A Large TV Licensing Deal 4th Quarter 2022 Financial Results (In Billions) PRO FORMA COMBINED REVENUE Revenues: (23)% vs. prior year quarter $5.1 (23)% TV licensing – difficult comp from a large TV licensing deal in prior year $3.8 Home entertainment – difficult C
Slide 7: Networks: Advertising Impacted by Continued Macro Headwind
Networks: Advertising Impacted by Continued Macro Headwind 4th Quarter 2022 Financial Results (In Billions) PRO FORMA COMBINED REVENUE Revenues: (6)% vs. prior year quarter $6.0 (6)% Advertising: (14)% vs. prior year quarter $5.5 General entertainment audience declines in the U.S. Macro conditions i
Slide 8: DTC: Substantial Improvement in DTC Profitability
DTC: Substantial Improvement in DTC Profitability 4th Quarter 2022 Financial Results (In Billions) PRO FORMA COMBINED Driving towards $1.0B profitability target in 2025 REVENUE $2.4 +6% $2.5 Total DTC subscribers(5): 96.1M (+1.1M net adds vs. Q3 2022) Revenues: +6% vs. prior year quarter Advertising
Slide 9: Reduced Net Debt by $2.3B to $45.6B in Q4
Reduced Net Debt by $2.3B to $45.6B in Q4 (As of December 31, 2022; In Billions) DEBT STRUCTURE DEBT MATURITIES BY YEAR 9% 24% < 3 years Average cost Average Fixed $49.5 of debt 3-5 years 44% maturity of Variable Gross Debt(6)(*) 5-10 years 4.3% 11% 14+ years > 10 years 91% 21% Deleveraging Plans •
Slide 10: Raising Total Synergy Estimate to $4B+
Raising Total Synergy Estimate to $4B+ Projected Synergy Realization Through 2024+ (In Billions, figures approximate) $4.0+ $3.5 $0.5+ $3.0 $0.5 Incremental Previous Guidance Merger 3Q22 Earnings Current Announcement 10
Slide 11: 2023 Guidance & Financial Objectives
2023 Guidance & Financial Objectives EBITDA Free Cash Flow Synergy Capture Leverage 33 – 50% conversion $2B+ incremental Comfortably below 4.0x net rate in 2023 leverage(*) by end of 2023 Low to mid 20% Y/Y & & & growth 60% conversion rate Total synergy estimate 2.5 – 3.0x gross leverage(*) longer t
Slide 12: 4th Quarter 2022 Earnings Presentation
4th Quarter 2022 Earnings Presentation February 23, 2023
Slide 13: Appendix
Appendix WARNER BROS. DISCOVERY
Slide 14: 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 15: Notes – cont.
Notes – cont. (3) Free cash flow: The Company defines free cash flow as cash flow from operations less acquisitions of property and equipment. The Company believes free cash flow is an important indicator for management and investors of the Company’s liquidity, including its ability to reduce debt,
Slide 16: Notes – cont.
Notes – cont. (6) Gross debt: The Company defines gross debt of $49.5 billion as total debt of $49.3 billion, plus finance leases of $268 million. The Company believes this measure is relevant to investors as it is a financial measure frequently used in evaluating a company's financial condition. (7
Slide 17: Reconciliation of Net Income to Adj. EBITDA – Q4 and FY22
Reconciliation of Net Income to Adj. EBITDA – Q4 and FY22 (Pro forma figures; In Millions) 3 Months Ending 12 Months Ending 12/31/21 12/31/22 12/31/21 12/31/22 Net (loss) income available to Warner Net (loss) income available to Warner $(757) $(1,408) $(3,750) $(5,359) Bros. Discovery, Inc. Bros. Di
Slide 18: Reconciliation of Reported Free Cash Flow – Q4 and FY22
Reconciliation of Reported Free Cash Flow – Q4 and FY22 (Reported figures; In Millions) 3 Months Ending 12 Months Ending 12/31/21 12/31/22 12/31/21 12/31/22 Reported Free Cash Flow: Reported Free Cash Flow: Cash provided by (used for) operating Cash provided by (used for) operating $884 $2,846 $2,79
Slide 19: 4th Quarter 2022 Earnings Presentation
4th Quarter 2022 Earnings Presentation February 23, 2023
Warner Bros. Discovery — Q4 2022 Earnings Presentation on 6ix