10-KPeriod: FY2023

Warner Bros. Discovery, Inc. Annual Report, Year Ended Dec 31, 2023

Filed February 23, 2024For Securities:WBD

Summary

Warner Bros. Discovery, Inc. (WBD) reported a net loss of $3.08 billion for the fiscal year ended December 31, 2023. This comes after a substantial net loss of $7.37 billion in 2022, largely attributed to the significant costs and adjustments related to the merger with the WarnerMedia business. Total revenues for 2023 reached $41.32 billion, a notable increase from $33.82 billion in 2022, driven by growth across all segments, particularly in DTC distribution and content. The company continues to navigate a competitive media landscape, facing ongoing challenges in linear advertising and distribution. However, strategic initiatives, including cost synergies and content optimization, are in progress. The company's balance sheet shows total assets of $122.76 billion and total liabilities of $76.29 billion, with total equity standing at $46.31 billion. While the company generated strong operating cash flow of $7.48 billion in 2023, it also utilized significant cash in financing activities, primarily for debt repayment.

Financial Highlights

51 data points
Beta

Revenue

$41.32B

Net Income

-$3.13B

-7.6% Net Margin

EPS (Diluted)

$-1.28

Total Assets

$122.76B

Cash & Equivalents

$3.78B

Free Cash Flow

$6.16B

Financial Statements
Beta
Revenue$41.32B
SG&A Expenses$9.70B
Operating Expenses$42.87B
Operating Income-$1.55B
Interest Expense$2.22B
Net Income-$3.13B
EPS (Basic)$-1.28
EPS (Diluted)$-1.28
Shares Outstanding (Basic)2.44B
Shares Outstanding (Diluted)2.44B

Key Highlights

  • 1Total revenues increased by 22% to $41.32 billion in 2023 compared to $33.82 billion in 2022, driven by growth in all segments.
  • 2The company reported a net loss of $3.08 billion for 2023, an improvement from a net loss of $7.37 billion in 2022.
  • 3Direct-to-Consumer (DTC) segment revenue grew by 40% to $10.15 billion in 2023, with DTC subscribers reaching 97.7 million.
  • 4Networks segment revenue increased by 10% to $21.24 billion in 2023.
  • 5Studios segment revenue saw a 25% increase to $12.19 billion in 2023, bolstered by strong performance from 'Barbie' and 'Hogwarts Legacy'.
  • 6The company's total debt was $43.96 billion as of December 31, 2023.
  • 7Cash provided by operating activities was $7.48 billion in 2023, significantly up from $4.30 billion in 2022.

Frequently Asked Questions

In 2023, Warner Bros. Discovery reported total revenues of $41.32 billion, an increase from $33.82 billion in 2022. The company achieved a net loss of $3.08 billion for the year, which is an improvement from the $7.37 billion net loss reported in 2022. Operating cash flow was strong at $7.48 billion.

All segments showed growth. The DTC segment revenue increased by 40% to $10.15 billion, with 97.7 million subscribers. Networks revenue grew by 10% to $21.24 billion. The Studios segment revenue rose by 25% to $12.19 billion, benefiting from major releases like 'Barbie'.

As of December 31, 2023, Warner Bros. Discovery had total debt of $43.96 billion. The company has been actively managing its debt, with significant repayments made during the year. The company's credit facility and commercial paper program remained undrawn at year-end.

Key factors included the successful integration of the WarnerMedia business, strong performance of key film and game releases ('Barbie', 'Hogwarts Legacy'), continued growth in the DTC segment, and strategic cost management. The company also noted the impact of the WGA and SAG-AFTRA strikes in 2023, which caused some production delays but also led to a positive impact on cash flow from delayed production spend.