Summary
Warner Bros. Discovery, Inc. (WBD) has reported its first quarterly results following the significant merger with WarnerMedia on April 8, 2022. The period ending March 31, 2022, reflects the standalone Discovery, Inc. operations prior to the merger's full integration. Total revenues for the quarter increased to $3.16 billion, up from $2.79 billion in the prior year, driven by growth in both advertising and distribution revenues. Net income available to common stockholders was $456 million, a substantial increase from $140 million in the prior year, with diluted EPS at $0.69 compared to $0.21. Despite the positive top-line and bottom-line growth as a standalone entity, investors should note that these results are not directly comparable to future periods due to the transformative merger. The company's balance sheet shows total assets of $33.8 billion and total liabilities of $20.2 billion as of March 31, 2022. Notably, goodwill remains substantial at $12.9 billion. The company also has a significant debt load, with total debt amounting to $14.4 billion (net of unamortized discount). The immediate aftermath of the merger, including integration costs and the accounting for the business combination, will be key areas to monitor in upcoming filings.
Financial Highlights
50 data points| Revenue | $3.16B |
| Cost of Revenue | $1.24B |
| Gross Profit | $1.92B |
| SG&A Expenses | $1.04B |
| Operating Expenses | $2.81B |
| Operating Income | $353.00M |
| Interest Expense | $153.00M |
| Net Income | $456.00M |
| EPS (Basic) | $0.69 |
| EPS (Diluted) | $0.69 |
| Shares Outstanding (Basic) | 591.00M |
| Shares Outstanding (Diluted) | 665.00M |
Key Highlights
- 1Total revenues increased by 13% year-over-year to $3.16 billion for the three months ended March 31, 2022.
- 2Net income available to Warner Bros. Discovery, Inc. shareholders more than tripled to $456 million from $140 million in the prior year's period.
- 3Diluted Earnings Per Share (EPS) rose to $0.69 from $0.21 in the comparable prior-year period.
- 4The company had $4.16 billion in cash and cash equivalents as of March 31, 2022, with no outstanding borrowings under its credit facility or commercial paper program.
- 5Significant investments in content and next-generation initiatives are ongoing, with content rights totaling $4.0 billion net.
- 6The company completed the transformative merger with WarnerMedia on April 8, 2022, which will significantly alter future financial reporting and comparability.
- 7Total debt stood at $14.4 billion (net of unamortized discount) as of March 31, 2022.