Warner Bros. Discovery, Inc. (the “Company”) (Nasdaq: WBD) today reported financial results for the quarter ended June 30, 2023.
The Company will conduct a conference call today at 8:00 a.m. ET to discuss the results. A link to the live webcast of the conference call will be available in the “Investor Relations” section of the Company’s website at https://ir.wbd.com/.
A telephone replay of the call will be available approximately two hours after the completion of the call until August 11, 2023. The replay can be accessed by phone by dialing +1 800-770-2030 or +1 647-362-9199 using playback passcode 1493434. A replay of the audio webcast will also be available in the “Investor Relations” section of the Company’s website for twelve months.
David Zaslav, President and Chief Executive Officer of Warner Bros. Discovery said, “The important work we are doing to transform our businesses for the future continues to drive our strong financial performance as demonstrated by meaningful improvements to our balance sheet and our now increased synergy target of more than $5 billion. This quarter alone we reported over $1.7 billion in free cash flow, and we remain bullish with respect to our delevering story and expect to be comfortably below 4.0x levered by the end of the year and at our target of 2.5-3.0x gross leverage by the close of 2024. All of which positions us well to lean into growth opportunities that will ultimately drive shareholder value, to include our Direct-to-Consumer business, which, in the wake of the successful launch of Max in the U.S., is tracking well ahead of our financial projections, having generated positive EBITDA in the first half of the year.”
Q2 Financial Summary & Operational Highlights:
- Q2 total revenues were $10,358 million. Revenues decreased 4% ex-FX, compared to the prior year quarter, on a combined basis.
- Net loss available to Warner Bros. Discovery, Inc. was $(1,240) million, and included $1,658 million of pre-tax amortization from acquisition-related intangible assets and $146 million of pre-tax restructuring expenses.
- Q2 total Adjusted EBITDA was $2,149 million. Adjusted EBITDA increased 23% ex-FX compared to the prior year quarter, on a combined basis.
- Cash provided by operating activities increased to $2,014 million. Reported free cash flow increased to $1,722 million.
- Q2 2023 cash provided by operating activities and reported free cash flow are not directly comparable to the prior year quarter due to the acquisition of the WarnerMedia business.
- Repaid $1.6 billion of debt during Q2. Ended the quarter with $3.1 billion of cash on hand, $47.8 billion of gross debt, and 4.6x net leverage.
- Launched a debt tender offer today for up to $2.7 billion.
- Global DTC subscribers decreased 1.8 million to 95.8 million at the end of Q2 vs. 97.6 million subscribers at the end of Q1.
- Successfully launched our new DTC product, Max, in the U.S. on May 23rd.
- Nominated for an industry-leading 181 primetime Emmy awards, including 127 nominations for HBO & Max – the most of any network or platform.
WARNER BROS. DISCOVERY REPORTS SECOND-QUARTER 2023 RESULTS
About Warner Bros. Discovery: Warner Bros. Discovery (Nasdaq: WBD) is a leading global media and entertainment company that creates and distributes the world’s most differentiated and complete portfolio of content and brands across television, film and streaming. Available in more than 220 countries and territories and 50 languages, Warner Bros. Discovery inspires, informs and entertains audiences worldwide through its iconic brands and products including: Discovery Channel, Max, discovery+, CNN, DC, Eurosport, HBO, HBO Max, HGTV, Food Network, OWN, Investigation Discovery, TLC, Magnolia Network, TNT, TBS, truTV, Travel Channel, MotorTrend, Animal Planet, Science Channel, Warner Bros. Film Group, Warner Bros. Television Group, Warner Bros. Games, New Line Cinema, Cartoon Network, Adult Swim, Turner Classic Movies, Discovery en Español, Hogar de HGTV and others. For more information, please visit www.wbd.com.