8-KRegulation FDExhibits & Filings

Warner Bros. Discovery, Inc. 8-K Report, Regulation FD Disclosure (Mar 24, 2020)

Filed March 24, 2020For Securities:WBD

Summary

Warner Bros. Discovery, Inc. (WBD), in an 8-K filing on March 24, 2020, announced the postponement of the 2020 Olympic Games. This event was previously expected to result in an AOIBDA loss of $175 million to $200 million in Q3 2020. The postponement will shift related revenues and expenses to fiscal year 2021. Due to the unprecedented economic uncertainty caused by the COVID-19 global pandemic and the Olympic Games postponement, the company is withdrawing its previously issued fiscal 2020 outlook and will not provide an updated forecast at this time. Despite the economic headwinds, WBD has observed a significant increase in television viewership globally as people are self-isolating. This surge in ratings and delivery is partially offsetting attributed weakness from economic conditions. The company is actively pursuing cost-saving initiatives to mitigate revenue losses stemming from production shutdowns and delays. In terms of liquidity, WBD has a $2.5 billion revolving credit facility and, as of December 31, 2019, had $1.55 billion in cash. To enhance its cash position and flexibility amidst uncertainty, the company drew down $500 million from its credit facility on March 12, 2020. Upcoming corporate debt maturities are scheduled for June 2020 ($600 million) and June 2021 ($640 million).

Key Highlights

  • 1Postponement of the 2020 Olympic Games will shift related revenues and expenses from FY2020 to FY2021.
  • 2The company withdraws its previously issued fiscal 2020 outlook due to COVID-19 uncertainty and the Olympic Games postponement.
  • 3An updated fiscal 2020 outlook will not be provided at this time.
  • 4WBD is experiencing increased television viewership and ratings due to global self-isolation measures related to COVID-19.
  • 5The company is implementing cost-saving initiatives to offset potential revenue losses.
  • 6WBD drew down $500 million from its $2.5 billion revolving credit facility to bolster cash and flexibility.
  • 7Upcoming debt maturities are $600 million in June 2020 and $640 million in June 2021.

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