60fd484c3a287f4937300f5dfddce1e60615992c5c2cb479f29a1a73e993e127

Studios

- Distribution

- Advertising

- Content

- Other

Networks

Corporate

Inter-segment Eliminations

Total Revenue

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6f03f7d4732c675ba45cec8164e8ca37dbe0c34d3daa373c66fd4572cfc7da4e

U.S.

Non-U.S.

U.S. Networks

International Networks

Other

Education and Other

Corporate, Inter-segment Eliminations, and Other

6b5c6bff6892e38abb1d44de456ab10787e64b65ba5398a1fc8528dad85bb9d7

Domestic ARPU (USD)

Domestic ARPU Year-over-Year Percentage Increase (percentage)

International ARPU (USD)

International ARPU Year-over-Year Percentage Increase (percentage)

Global ARPU (USD)

Global ARPU Year-over-Year Percentage Increase (percentage)

Number of Domestic DTC Subscribers (millions of subscribers)

Number of International DTC Subscribers (millions of subscribers)

Total DTC Subscribers (millions of subscribers)

3a39db78ef683b6245a3d8d7f20a6f083767fee250db63a80546ab59c93709b0

The net loss in **Q2 2024** was notably high primarily due to a **$9.1 billion non-cash goodwill impairment charge** and additional **$2.1 billion in acquisition-related amortization and restructuring expenses**. The goodwill impairment was triggered by factors such as the difference between market capitalization and book value, softness in the U.S. linear advertising market, and uncertainties related to affiliate and sports rights renewals. These one-time accounting effects significantly drove up the net loss for the quarter.  **[0001437107-24-000163_wbd2q24earningsreleasefi.htm:0]** **[20240817DC85824:0]** 

Why was Net loss so high in Q2 2024?

The documents note that in **Q1 2024**, factors such as **improved working capital**, a **more disciplined approach to content investment**, **lower cash restructuring costs**, **reduced cash interest expense** following significant debt repayments, and **timing differences in production and content investments** contributed to the operating cash flow performance relative to the same quarter a year ago.  **[WBD_3387821_5]** **[0001437107-24-000107_exhibit99-1wbd1q24earnin.htm:4]**  However, these sources explain the year‐over‐year improvement rather than addressing the steep drop from **$3,578 million in Q4 2023** to **$585 million in Q1 2024**.  **[0001437107-24-000017_wbd-20231231.htm:87]** **[0001437107-24-000110_disca-20240331.htm:3]**  Thus, the documents do not provide a definitive explanation for that sharp quarter‑over‑quarter decline.

What drove the steep drop in operating cash flow in Q1 2024?

The reversal in net change in cash in **Q1 2024** was driven primarily by a significant improvement in **operating activities**, where cash provided increased markedly to **$585 million** in Q1 2024 from a negative **$(631) million** in Q1 2023. This improvement was mainly due to **better working capital management**, a **more disciplined approach to content investment**, and **lower cash restructuring costs**. Additionally, there was a slight decrease in the cash used for **investing activities** (from **$(257) million** to **$(207) million**), as well as a change in the effect of **exchange rate changes**, although these positive factors were partly offset by a higher use of cash in **financing activities** due to increased principal repayments of debt ( **[0001437107-24-000107_exhibit99-1wbd1q24earnin.htm:8]** **[0001437107-24-000107_exhibit99-1wbd1q24earnin.htm:4]** **[0001437107-24-000107_exhibit99-1wbd1q24earnin.htm:8]** **[0001437107-24-000110_disca-20240331.htm:33]** ).

What caused the reversal in net change in cash in Q1 2024?

6bd9044bc8d28210654be6217386293a037df38b2c734bb2b3d343e9fa10f9a2

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

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6fe1aad9e2917601f5b7e28f9b7a28acccaacaa9929d8c58a471a40ea89cf3b0

Warner Bros Discovery Inc (WBD)

Financials