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10-QPeriod: Q3 FY2015

Warner Bros. Discovery, Inc. Quarterly Report for Q3 Ended Sep 30, 2015

Filed November 3, 2015For Securities:WBD

Summary

Discovery Communications, Inc. (WBD) reported revenues of $1.557 billion for the third quarter of 2015, a slight decrease of 1% year-over-year. Net income available to Discovery Communications, Inc. stockholders was $279 million, remaining flat compared to the prior year period. The company's financial position remained largely stable, with total assets at $15.919 billion and total liabilities at $10.033 billion as of September 30, 2015. Key operational highlights include a 4% increase in Distribution revenue driven by annual contractual rate increases and subscriber growth in Latin America and CEEMEA. Advertising revenue saw a slight dip of 4% due to lower audience delivery in the U.S. The company continued to invest in content, with costs of revenues increasing 9% driven by higher content amortization, reflecting a commitment to programming. Management highlighted ongoing efforts in business combinations, particularly the acquisition of Eurosport, which was fully consolidated during the period. The company also maintained a strong liquidity position with $262 million in cash and cash equivalents and access to a $1.5 billion revolving credit facility.

Financial Statements
Beta

Key Highlights

  • 1Total revenues for the third quarter of 2015 were $1.557 billion, a slight decrease of 1% year-over-year.
  • 2Net income available to Discovery Communications, Inc. stockholders was $279 million, flat compared to the prior year.
  • 3Distribution revenue increased by 4% year-over-year, driven by U.S. Networks and International Networks segments.
  • 4Advertising revenue decreased by 4% year-over-year, impacted by lower audience delivery in the U.S.
  • 5Content amortization increased, reflecting continued investment in programming.
  • 6The company completed the full acquisition of Eurosport, integrating it into its financial reporting.
  • 7Liquidity remained strong with $262 million in cash and cash equivalents and significant availability under its revolving credit facility.

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