Summary
Warner Bros. Discovery, Inc. (WBD), formerly Discovery, Inc., is presenting its 2021 annual report, highlighting significant events and operational performance leading up to its transformative combination with AT&T's WarnerMedia business. The anticipated merger, structured as a Reverse Morris Trust transaction, is expected to create a leading global entertainment company. During 2021, WBD continued to grow its advertising and distribution revenues, driven by the launch and expansion of its direct-to-consumer (DTC) streaming service, discovery+. Financially, the company saw a 14% increase in total revenues, reaching $12.19 billion, while operating income declined by 20% to $2.01 billion, impacted by increased costs for content, particularly related to the Olympics and discovery+ investment, and higher selling, general, and administrative expenses. The company ended the year with $3.9 billion in cash and cash equivalents, with a strong liquidity position to fund its ongoing operations and strategic initiatives, including the substantial debt associated with the impending WarnerMedia combination.
Financial Highlights
52 data points| Revenue | $12.19B |
| SG&A Expenses | $4.02B |
| Operating Expenses | $10.18B |
| Operating Income | $2.01B |
| Interest Expense | $633.00M |
| Net Income | $1.01B |
| EPS (Basic) | $1.55 |
| EPS (Diluted) | $1.54 |
| Shares Outstanding (Basic) | 588.00M |
| Shares Outstanding (Diluted) | 664.00M |
Key Highlights
- 1Warner Bros. Discovery (WBD) reported total revenues of $12.19 billion for the year ended December 31, 2021, a 14% increase compared to 2020.
- 2Operating income decreased by 20% to $2.01 billion in 2021, primarily due to increased content expenses and higher selling, general, and administrative costs.
- 3The company launched discovery+, its aggregated direct-to-consumer (DTC) streaming service, in January 2021, reaching 22 million paid DTC subscribers by the end of the year.
- 4WBD is progressing towards its combination with AT&T's WarnerMedia business, a transaction anticipated to close in the second quarter of 2022, subject to shareholder and regulatory approvals.
- 5The company ended 2021 with $3.9 billion in cash and cash equivalents, demonstrating a strong liquidity position.
- 6Advertising revenue increased by 11% to $6.22 billion, driven by market recovery post-COVID-19 and Olympic broadcast revenue.
- 7Distribution revenue also rose by 11% to $5.41 billion, primarily due to the growth of discovery+ and increased contractual affiliate rates.