Warner Bros. Discovery, Inc. (the “Company”) (Nasdaq: WBD) today reported financial results for the quarter ended June 30, 2024. The Company will conduct a conference call today at 4:30 p.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 15, 2024. The replay can be accessed via phone by dialing +1 800-839-5635 or +1 402-220-2561. 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, “At Warner Bros. Discovery, our top priority is our global direct-to-consumer business and we are extremely pleased with the growing momentum we are seeing, as demonstrated by another strong quarter of growth with 3.6 million net adds, fueled by our ongoing international expansion and investment in high quality, diverse content. In light of industry headwinds, we have and will continue taking bold steps, like reimagining our existing linear partnerships and pursuing new bundling opportunities, with the goal to get Max on the devices of more consumers faster and at a fraction of the acquisition cost, and we are seeing clear evidence that these and other actions we are taking will help drive segment profitability in the second half of the year and into 2025 and beyond.”
Q2 Financial Summary & Operational Highlights:
- Q2 total revenues were $9.7 billion, a 5% ex-FX decrease compared to the prior year quarter.
- Net loss available to Warner Bros. Discovery, Inc. was $(10.0) billion, which includes a $9.1 billion non-cash goodwill impairment charge from the Networks segment, as well as $2.1 billion of pre-tax acquisition-related amortization of intangibles, content fair value step-up, and restructuring expenses.
- The goodwill impairment was triggered in response to the difference between market capitalization and book value, continued softness in the U.S. linear advertising market, and uncertainty related to affiliate and sports rights renewals, including the NBA.
- Q2 total Adjusted EBITDA was $1.8 billion, a 15% ex-FX decrease compared to the prior year quarter.
- Cash provided by operating activities decreased to $1.2 billion. Free cash flow decreased to $1.0 billion.
- Repaid $1.8 billion of debt during Q2, ending the quarter with $3.6 billion of cash on hand, $41.4 billion of gross debt, and 4.0x net leverage.
- Purchased $3.4 billion of debt for $2.6 billion through a tender offer funded by cash on hand and a €1.5 billion senior notes offering.
- Global DTC subscribers were 103.3 million at the end of Q2, an increase of 3.6 million subscribers vs. Q1. Global DTC ARPU was $8.00, a 4% ex-FX increase vs. the prior year quarter.
- Successfully launched Max and migrated subscribers to the new platform across Europe, including new market launches in France and Belgium. Max is now available in 65 countries and territories.
- The 2024 CNN Presidential Debate was the highest rated linear program in the history of CNN.
- TNT Sports continued to strengthen its sport portfolio with multi-year domestic agreements for BIG EAST men’s and women’s college basketball, the French Open, Mountain West college football, and the College Football Playoffs.
- Adult Swim Q2 primetime ratings grew 14% year-over-year, its third consecutive quarter of primetime growth.
WARNER BROS. DISCOVERY REPORTS SECOND-QUARTER 2024 RESULTS
About Warner Bros. Discovery:
Warner Bros. Discovery is a leading global media and entertainment company that creates and distributes the world’s most differentiated and complete portfolio of branded content across television, film, streaming and gaming. 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, TNT Sports, Eurosport, HBO, HGTV, Food Network, OWN, Investigation Discovery, TLC, Magnolia Network, TNT, TBS, truTV, Travel Channel, MotorTrend, Animal Planet, Science Channel, Warner Bros. Motion Picture Group, Warner Bros. Television Group, Warner Bros. Pictures Animation, 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.
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Source: Warner Bros. Discovery, Inc.