Warner Bros. Discovery, Inc. - Series A · NASDAQ:WBD
Warner Bros. Discovery, Inc. - Series A — Warner Bros. Discovery — Q3 2023 Earnings Presentation
17 slides from Warner Bros. Discovery, Inc. - Series A's earnings presentation, Nov 8, 2023
Slide 1: 3rd Quarter 2023 Earnings Presentation
3rd Quarter 2023 Earnings Presentation November 8, 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 Drive Healthy Financial Results
Operational and Transformation Initiatives Drive Healthy Financial Results 3rd Quarter 2023 Financial Results (In Billions) REVENUE ADJ. EBITDA(1)(*) REPORTED FCF(2)(*) Elims $3.0 $2.1 +1% Elims +22% $9.8 $10.0 $2.4 $(0.2) 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23 Note: $ shown incl. FX impact; growth rates sho
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) $545 $383 $230 22% 23% 12% (8%) (2%) $(138) (31%) $(244) $(734) 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Note: $ shown incl. FX impact; growth rates shown on an ex-FX basis(*) Note: For 2Q21 through 2Q22 underlying Adj
Slide 5: Studios: Film & Games Contribution Offset by Lower TV Revenues
Studios: Film & Games Contribution Offset by Lower TV Revenues 3rd Quarter 2023 Financial Results (In Billions) REVENUE Revenues: +3% vs. prior year quarter $3.1 +3% $3.2 Theatrical – record breaking performance of Barbie and more titles released in the current year quarter Games – release of Mortal
Slide 6: Networks: Continued Ad Softness
Networks: Continued Ad Softness 3rd Quarter 2023 Financial Results (In Billions) REVENUE Revenues: (7)% vs. prior year quarter $5.2 (7)% $4.9 Distribution: (2)% U.S. affiliate rate increase Lower U.S. pay-TV subscribers Advertising: (13)% 3Q22 3Q23 General entertainment & news audience declines in t
Slide 7: DTC: Profitability Driven by Revenue Growth and Operating Efficiency
DTC: Profitability Driven by Revenue Growth and Operating Efficiency 3rd Quarter 2023 Financial Results (In Billions) REVENUE Total DTC subscribers(5): 95.1M (-0.7M net adds vs. 2Q23) $2.3 +5% $2.4 Global ARPU(6): $7.82, +6% growth Revenues: +5% vs. prior year quarter Distribution: +5% Price increas
Slide 8: Repaid $2.4B of Debt in Q3 & ~$12B Total Debt Paid Through October
Repaid $2.4B of Debt in Q3 & ~$12B Total Debt Paid Through October (As of September 30, 2023; In Billions) DEBT STRUCTURE DEBT MATURITIES BY YEAR 3% 19% < 3 years Average cost Average Fixed $45.3 of debt 3-5 years 48% 14% maturity of Variable Gross Debt(7)(*) 5-10 years 4.66% ~15 years > 10 years 97
Slide 9: Key Guidance & Financial Objectives
Key Guidance & Financial Objectives Adjusted Free Cash Flow(*) Synergy Capture Leverage EBITDA(*) 2023: 2023: Total synergy estimate of Comfortably below 4.0x net $10.5 - $11.0B range Approximately $5.3B $5B+ leverage(*) by end of 2023 & & & & 2023: U.S. DTC profitable 60% conversion rate longer Cos
Slide 10: 3rd Quarter 2023 Earnings Presentation
3rd Quarter 2023 Earnings Presentation November 8, 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) 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. (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 – Q3 2022 & 2023
Reconciliation of Net Income to Adj. EBITDA – Q3 2022 & 2023 (In Millions) 3 Months Ending 9/30/22 9/30/23 Net (loss) available to Warner Bros. Discovery, Inc. $(2,308) $(417) Net income attributable to noncontrolling interests 23 10 Net (loss) (2,285) (407) Income tax (benefit) (566) (125) Other (i
Slide 16: Reconciliation of Reported Free Cash Flow – Q3 2022 & 2023
Reconciliation of Reported Free Cash Flow – Q3 2022 & 2023 (Reported figures; In Millions) 3 Months Ending 9/30/22 9/30/23 Reported Free Cash Flow: Cash provided by (used for) operating $124 $2,516 activities Less: Purchases of property and (316) (457) equipment Reported Free Cash Flow(*) $(192) $2,
Slide 17: 3rd Quarter 2023 Earnings Presentation
3rd Quarter 2023 Earnings Presentation November 8, 2023
Warner Bros. Discovery — Q3 2023 Earnings Presentation on 6ix