Summary
Warner Bros. Discovery, Inc. (WBD), formerly Discovery Communications, Inc., reported significant strategic and financial activities in its 2008 10-K filing. The company completed the "Newhouse Transaction" in September 2008, combining its ownership interests in Discovery Communications Holding, LLC (DCH) with Advance/Newhouse Programming Partnership. This consolidation established a new reporting entity, Discovery Communications, Inc. The company operates through three primary segments: U.S. Networks, International Networks, and Commerce, Education, and Other. Financially, 2008 saw a substantial increase in revenues to $3.44 billion, primarily driven by growth in distribution and advertising across its global network operations. The company highlighted its extensive programming library and strategic focus on expanding its reach across new digital platforms, including websites and mobile devices, while also emphasizing the growth of its High Definition (HD) offerings internationally. However, the company also noted significant debt levels, with approximately $3.7 billion in consolidated debt at year-end 2008, and highlighted the potential risks associated with economic downturns impacting advertising spending and consumer discretionary spending.
Financial Highlights
49 data points| Revenue | $3.38B |
| Cost of Revenue | $1.00B |
| Gross Profit | $2.38B |
| SG&A Expenses | $1.07B |
| Operating Expenses | $2.32B |
| Operating Income | $1.06B |
| Interest Expense | $256.00M |
| Net Income | $317.00M |
| EPS (Basic) | $0.99 |
| EPS (Diluted) | $0.98 |
| Shares Outstanding (Diluted) | 322.00M |
Key Highlights
- 1Completed the Newhouse Transaction in September 2008, consolidating ownership interests and establishing a new reporting entity, Discovery Communications, Inc.
- 2Reported total revenues of $3.44 billion for the year ended December 31, 2008, a significant increase attributed to growth in distribution and advertising revenue.
- 3Operates across three key segments: U.S. Networks, International Networks, and Commerce, Education, and Other, with a strong global presence reaching approximately 170 countries.
- 4Emphasizes a strategy focused on content quality, distribution growth across traditional and new platforms (digital, mobile, VOD), and expansion of High Definition (HD) programming.
- 5Holds an extensive programming library of over 100,000 hours, providing a valuable asset for launching new services and repurposing content.
- 6Maintains a substantial debt load, with approximately $3.7 billion in consolidated debt outstanding at December 31, 2008.
- 7Faces risks from economic downturns, competitive pressures in the media industry, and potential changes in regulatory environments.