Early Access

10-KPeriod: FY2013

Warner Bros. Discovery, Inc. Annual Report, Year Ended Dec 31, 2013

Filed February 20, 2014For Securities:WBD

Summary

Warner Bros. Discovery, Inc. (WBD), operating as Discovery Communications, Inc. at the time of this filing, reported robust revenue growth of 23% to $5.535 billion in 2013. This growth was primarily driven by a strong performance in both its U.S. Networks and International Networks segments, with distribution and advertising revenues increasing significantly. The company's strategy focuses on content investment, optimizing distribution revenue, and expanding across new platforms. Acquisitions played a significant role, with the notable purchase of SBS Nordic impacting the International Networks segment. Despite increased costs associated with content and SG&A, the company demonstrated improved operating income, up 8% to $1.998 billion. The company also managed its debt effectively, with a substantial revolving credit facility available, and continued its share repurchase program, underscoring a commitment to returning value to shareholders. Overall, the filing presents a picture of a growing, strategically expanding media company navigating a dynamic industry.

Financial Statements
Beta
Revenue$5.54B
Cost of Revenue$1.69B
Gross Profit$3.85B
SG&A Expenses$1.60B
Operating Expenses$3.56B
Operating Income$1.98B
Interest Expense$306.00M
Net Income$1.07B
EPS (Basic)$3.01
EPS (Diluted)$2.97
Shares Outstanding (Basic)357.00M
Shares Outstanding (Diluted)361.00M

Key Highlights

  • 1Total revenues increased by 23% to $5.535 billion in 2013, driven by strong performance in both U.S. and International Networks.
  • 2The U.S. Networks segment saw a 7% revenue increase to $2.952 billion, with advertising revenue up 8% and distribution revenue up 6%.
  • 3The International Networks segment experienced significant growth with revenues up 51% to $2.474 billion, boosted by the acquisition of SBS Nordic and growth in Latin America.
  • 4Operating income rose by 8% to $1.998 billion, reflecting the company's ability to manage costs despite increased investments in content and SG&A.
  • 5The company repurchased approximately $1.05 billion of its common stock in 2013 as part of its ongoing share repurchase program.
  • 6Discovery Communications entered into an agreement to acquire a controlling interest in Eurosport International, expanding its European sports media presence.
  • 7Debt levels increased, with total debt reaching $6.515 billion, but the company maintained access to a $1.0 billion revolving credit facility.

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