August 20, 2022

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Warner Bros.  Discovery Posts 92 Million DTC Subscribers for Q2 - Deadline

Warner Bros. Discovery Posts 92 Million DTC Subscribers for Q2 – Deadline

shares Warner Bros. Discovery It fell sharply in late trading after the company reported its first consolidated financial statements which included a big net loss, disappointing revenue, high debt and slower streaming growth.

Obviously, a lengthy call with CEO David Zaslav, CFO Gunnar Wiedenfels and global broadcast head JB Perrette including presentations, slides and Q&A didn’t reassure Wall Street. The new team is in the midst of a major restructuring and rethinking of economic models around broadcasting, theatrical distribution, and costs. you will unite HBO Max and Discovery, and then may offer a free ad support service.

Stream losses ($518 million actual, $560 million tentatively combined) are expected to peak this year and the company to report $1 billion in positive EBIDTA by 2025, when the combined company expects to have an additional 40 million subscribers, about 130 million .

The total debt was $53 billion, Wiedenfels said, a huge but often long-term amount. Warner is looking to cut costs by at least $3 billion, spend carefully, and it’s a process in progress. exclude bat girl, And the Dimond of JJ Abrams and is said to be on the verge of laying off workers starting this month. Executives did not mention when the job cuts were approaching, nor did Wall Street analysts ask about them.

The CFO described 2022 as a transitional year and began his remarks noting that a more difficult economic background and a full look at the combined numbers required the team to adjust forecasts for this year and next.

Read earnings report over here.

previously: Newly minted Warner Brothers Discovery posted $9.8 billion in profit in its first notable earnings report since WarnerMedia and Discovery officially tied the knot. It would have been $10.8 billion if the company had been incorporated for a full three months. (They closed their deal on April 8th.) This was down 3% from the previous year and less than the $11.8 billion consensus on Wall Street.

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Net losses of $3.4 billion (or $2.2 billion pro forma) included $2 billion from amortizing intangible assets, $1 billion from restructuring and other fees, and $983 million in transaction and integration expenses.

The deal represents a major shift in the media landscape as the publicly merged company begins to take shape today. CEO David Zaslav, Chief Financial Officer Gunnar Wiedenfels, and Global Broadcasting Director JB Perrett will introduce business lines and strategic lines and take questions from Wall Street in a webcast starting at 4:30 ET that can run for several hours with details or Think of the combination HBO Max and discover + ; In the movie (including Why has WBD been shelved bat girl in the final stages of post-production); on impending layoffs to eliminate redundancies amid a planned $3 cost savings; On IP, news and sports. It’s a big floor. at startup, WBD announced earlier today CNN The hub of the original broadcast on Discovery+, and Magnolia Network’s move to HBO Max.

Here are some of the financial features:

Total reported revenues for the second quarter were $9.8 billion. Pro forma consolidated revenue decreased 1% excluding foreign exchange compared to the same quarter last year.

Net losses of $3.4 billion include $2 billion from amortizing intangible assets, $1 billion for restructuring and other fees, and $983 million in transaction and integration expenses.

Adjusted EBITDA was $1.664 billion.

Increased cash generated from operating activities to $1 billion and reported free cash flow to $789 million.

– Ended the second quarter with $3.9 billion in cash, and $53 billion in total debt.

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– Ended the second quarter with 92.1 million global DTC subscribers, an increase of 1.7 million compared to 90.4 million subscribers at the end of the first quarter, as modified to define the company’s new DTC subscriber. The new definition removed 10 million nonessential Discovery subscribers and inactive AT&T Mobility subscribers from the number of subscribers in the first quarter.

“We’ve had a busy and productive four months since launching Warner Bros. Discovery, and we’re more convinced than ever of the tremendous opportunity that lies ahead,” said CEO David Zaslav.

“We have the most powerful creative engine and bouquet of proprietary content in the world, as shown in our 193 Industry-Leading Emmy nominations, and we intend to maximize the value of this content through a broad distribution model that includes cable theatre, live and line broadcasting, free consumer and gaming products and experiences, and more, Everywhere in the world. We’re confident we’re on track to achieve our strategic goals and truly excel, both creatively and financially, and we couldn’t be more excited about the future of our company.”