01—Abstract
Summary
Summary of the 10-K filed February 17, 2012. Cited figures are marked; the original filing is the authoritative source.
Warner Bros.
Discovery, Inc. (WBD), previously operating as Discovery Communications, Inc. (DISCA), filed its 2011 10-K report, detailing a strong financial performance with revenues reaching $4.235 billiona, a 12% increase year-over-year. The company demonstrated significant operating income growth of 32% to $1.8 billion, driven by robust performance in both its U.S. and International Networks segments. Net income attributable to stockholders saw a substantial 73% increase, reaching $1.132 billion.
The report highlights the company's diversified content portfolio, focusing on nonfiction and reality programming across its key networks like Discovery Channel, TLC, and Animal Planet. Significant investments in content development and strategic international expansion, including the rollout of TLC in over 150 countries, underscore the company's growth strategy.
Furthermore, WBD actively managed its capital structure, repurchasing approximately $1 billionb of its Series C common stock during the year, signaling a commitment to shareholder returns. The company's financial health is further supported by substantial liquidity, with $1.048 billion in cash and cash equivalents and $1 billion available under its revolving credit facility at year-end.
02—Key points
Key Highlights
- Total revenues increased by 12% to $4.235 billion in 2011, driven by strong performance in both U.S. and International Networks segments.
- Operating income grew by 32% to $1.80 billion, reflecting improved operational efficiency and revenue growth.
- Net income attributable to Discovery Communications, Inc. stockholders significantly increased by 73% to $1.13 billion.
- The company actively repurchased common stock, spending $997 million in 2011 under its $2 billion authorized stock repurchase program.
- Substantial investments were made in content, with content amortization and impairment expense totaling $968 million.
- Liquidity remained strong, with $1.048 billion in cash and cash equivalents and $1 billion available under its revolving credit facility at year-end.
- International Networks segment revenue grew 16% to $1.455 billion, indicating successful global expansion efforts.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2011, Warner Bros. Discovery, Inc. kept $0.27.
- Revenue$4.17B100.0%
- Cost of revenue−$1.18B28.2%
- Gross profit$2.99B71.8%
- Operating costs−$1.19B28.5%
- Operating income$1.80B43.3%
- Interest, other & tax−$670.0M16.1%
- Net income$1.13B27.2%
Where FY2011 revenue went
$4.17B- Cost of revenue: $1.18B, 28% of revenue
- SG&A: $1.17B, 28% of revenue
- Net income: $1.13B, 27% of revenue
- Interest, other & tax: $670.0M, 16% of revenue
Kept 27% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2011filed February 17, 2012Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $4.17B$3.71B | +12.5% |
| Cost of Revenue | $1.18B$1.01B | +16.1% |
| Gross Profit | $2.99B$2.69B | +11.1% |
| SG&A Expenses | $1.17B$1.17B | −0.3% |
| Operating Expenses | $2.37B$2.33B | +1.5% |
| Operating Income | $1.80B$1.38B | +30.9% |
| Interest Expense | $208.00M$203.00M | +2.5% |
| Net Income | $1.13B$653.00M | +73.5% |
| EPS (Basic) | $2.82$1.53 | +84.3% |
| EPS (Diluted) | $2.80$1.52 | +84.2% |
| Shares Outstanding (Basic) | 401.00M425.00M | −5.6% |
| Shares Outstanding (Diluted) | 405.00M429.00M | −5.6% |
05—Questions
Frequently Asked Questions
What was the overall financial performance of Warner Bros. Discovery in 2011?
In 2011, Warner Bros. Discovery (then Discovery Communications) reported strong financial results, with total revenues increasing by 12% to $4.235 billion and operating income growing by 32% to $1.80 billion. Net income attributable to stockholders rose significantly by 73% to $1.13 billion, reflecting effective operational management and revenue growth across its networks.
How did the company's content strategy contribute to its performance?
The company made substantial investments in content development and acquisition, with content amortization and impairment expenses totaling $968 million in 2011. This focus on compelling nonfiction and reality programming across key networks like Discovery Channel, TLC, and Animal Planet supported viewership and drove both distribution and advertising revenue.
What is the company's approach to capital management and shareholder returns?
Warner Bros. Discovery demonstrated a commitment to capital management and shareholder returns by actively repurchasing its common stock. In 2011, the company spent $997 million on stock repurchases under its $2 billion authorized program. The company also maintained strong liquidity, ending 2011 with $1.048 billion in cash and cash equivalents and $1 billion available under its revolving credit facility.
What were the key drivers of growth in the International Networks segment?
The International Networks segment experienced significant growth, with revenues increasing by 16% to $1.455 billion in 2011. This growth was attributed to the successful international rollout of networks, particularly TLC, in over 150 countries, coupled with increased distribution and advertising revenue across various global markets.
06—Continue