Summary
Warner Bros. Discovery, Inc. (WBD) reported its financial results for the third quarter and nine months ended September 30, 2024. Total revenues for the quarter declined by 4% year-over-year to $9.62 billion, and by 6% for the nine-month period to $29.29 billion. This decline was primarily driven by reduced advertising and content revenues, although distribution revenue showed slight resilience. The company reported an operating income of $281 million for the quarter, a significant improvement from $97 million in the prior year, but a substantial operating loss of $10.19 billion for the nine-month period, largely influenced by a $9.1 billion goodwill impairment charge recognized in the second quarter. Net income available to Warner Bros. Discovery, Inc. shareholders was $135 million for the quarter, a turnaround from a net loss of $417 million in the prior year. However, for the nine-month period, the company reported a net loss of $10.82 billion. The company continued its debt reduction efforts, with total debt decreasing to $40.2 billion from $44.0 billion at the end of 2023. Cash flow from operations remained positive, although lower than the prior year, indicating ongoing operational challenges and strategic adjustments within the media and entertainment landscape.
Financial Highlights
47 data points| Revenue | $9.62B |
| SG&A Expenses | $2.38B |
| Operating Expenses | $9.34B |
| Operating Income | $281.00M |
| Net Income | $135.00M |
| EPS (Basic) | $0.06 |
| EPS (Diluted) | $0.05 |
| Shares Outstanding (Basic) | 2.45B |
| Shares Outstanding (Diluted) | 2.47B |
Key Highlights
- 1Total revenues decreased by 4% year-over-year to $9.62 billion in Q3 2024, and by 6% for the nine-month period to $29.29 billion, impacted by declines in advertising and content revenues.
- 2Operating income improved to $281 million in Q3 2024 from $97 million in Q3 2023, but the nine-month operating loss widened to $10.19 billion, primarily due to a $9.1 billion goodwill impairment charge.
- 3Net income available to common stockholders was $135 million in Q3 2024, a significant improvement from a net loss of $417 million in the prior year period. The nine-month net loss was $10.82 billion.
- 4Total debt was reduced to $40.2 billion as of September 30, 2024, down from $43.7 billion at December 31, 2023, reflecting ongoing debt management efforts.
- 5Cash provided by operating activities for the nine months ended September 30, 2024, was $2.66 billion, a decrease from $3.90 billion in the prior year, impacted by lower net income and changes in content investment.
- 6The DTC segment saw revenue growth of 8% in Q3 2024, driven by subscriber growth from the launch of Max in Latin America and Europe, and a 49% increase in advertising revenue.
- 7The Networks segment experienced a 13% decrease in advertising revenue due to audience declines and softness in the linear advertising market, despite some partial offsets from Olympics programming.