60fd484c3a287f4937300f5dfddce1e60615992c5c2cb479f29a1a73e993e127

Studios

- Distribution

- Advertising

- Content

- Other

Networks

Corporate

Inter-segment Eliminations

Total Revenue

24814e413e4d601bb3e9416520dfc7aea4fa2a7f570ad9988a6476fd08e17429

Net loss [USD, millions]

Content rights amortization and impairment [USD, millions]

Depreciation and amortization [USD, millions]

Share-based compensation expense [USD, millions]

Impairments and loss on dispositions [USD, millions]

Other, net [USD, millions]

Cash provided by operating activities [USD, millions]

Purchases of property and equipment [USD, millions]

Proceeds from sales of investments [USD, millions]

Investments in and advances to equity investments [USD, millions]

Other investing activities, net [USD, millions]

Cash used in investing activities [USD, millions]

Principal repayments of debt, including premiums and discounts to par value [USD, millions]

Borrowings from debt, net of discount and issuance costs [USD, millions]

Distributions to noncontrolling interests and redeemable noncontrolling interests [USD, millions]

Borrowings under commercial paper program and revolving credit facility [USD, millions]

Repayments under commercial paper program and revolving credit facility [USD, millions]

Other financing activities, net [USD, millions]

Cash used in financing activities [USD, millions]

Effect of exchange rate changes on cash, cash equivalents, and restricted cash [USD, millions]

Net change in cash, cash equivalents, and restricted cash [USD, millions]

Deferred income taxes [USD, millions]

Receivables, net [USD, millions]

Film and television content rights, games, and production payables, net [USD, millions]

Accounts payable, accrued liabilities, deferred revenues and other noncurrent liabilities [USD, millions]

Foreign currency, prepaid expenses and other assets, net [USD, millions]

Cash, cash equivalents, and restricted cash, beginning of period [USD, millions]

Cash, cash equivalents, and restricted cash, end of period [USD, millions]

15c64b051d7ecd586ad08afa5f34f1145351f7e1f0b0aa977f7a2ea2f2918e88

U.S.

Non-U.S.

U.S. Networks

International Networks

Other

Education and Other

Corporate, Inter-segment Eliminations, and Other

14abc916b68a38267cd7e81e88912d8835e8de45a6aa0f7c530bad86d015c54f

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]

22958be6029877618c087173cbe7625d02545df21bd207ca0009e3838d469e7e

6fe1aad9e2917601f5b7e28f9b7a28acccaacaa9929d8c58a471a40ea89cf3b0

Distribution Revenues (USD, millions)

Advertising Revenues (USD, millions)

Content Revenues (USD, millions)

Other Revenues (USD, millions)

Total Revenues (USD, millions)

Costs of revenues, excluding depreciation and amortization (USD, millions)

Selling, general and administrative (USD, millions)

Depreciation and amortization (USD, millions)

Restructuring and other charges (USD, millions)

Impairments and loss on dispositions (USD, millions)

Total costs and expenses (USD, millions)

Operating income (loss) (USD, millions)

Interest expense, net (USD, millions)

Gain (loss) on extinguishment of debt (USD, millions)

Loss from equity investees, net (USD, millions)

Other income (expense), net (USD, millions)

Loss before income taxes (USD, millions)

Income tax benefit (expense) (USD, millions)

Net income (loss) (USD, millions)

Net income attributable to noncontrolling interests (USD, millions)

Net (income) loss attributable to redeemable noncontrolling interests (USD, millions)

Net income (loss) available to Warner Bros. Discovery, Inc. (USD, millions)

4352166be2c240655e7cf7e1df9fb516709ae6c45db0ad9cceed0a368fc6e6f3

Cash and cash equivalents (USD, millions)

Receivables, net (USD, millions)

Prepaid expenses and other current assets (USD, millions)

Total current assets (USD, millions)

Film and television content rights and games (USD, millions)

Property and equipment, net (USD, millions)

Goodwill (USD, millions)

Intangible assets, net (USD, millions)

Other noncurrent assets (USD, millions)

Total assets (USD, millions)

Accounts payable (USD, millions)

Accrued liabilities (USD, millions)

Deferred revenues (USD, millions)

Current portion of debt (USD, millions)

Total current liabilities (USD, millions)

Noncurrent portion of debt (USD, millions)

Deferred income taxes (USD, millions)

Other noncurrent liabilities (USD, millions)

Total liabilities (USD, millions)

Series A common stock (USD, millions)

Preferred stock (USD, millions)

Additional paid-in capital (USD, millions)

Treasury stock, at cost (USD, millions)

Accumulated deficit (USD, millions)

Accumulated other comprehensive loss (USD, millions)

Total Warner Bros. Discovery, Inc. stockholders’ equity (USD, millions)

Noncontrolling interests (USD, millions)

Total equity (USD, millions)

Total liabilities and equity (USD, millions)

Redeemable noncontrolling interests (USD, millions)

af9590a358e89e7af9f0ee0faa97b111ec22c1be04eabea7ff208ead110ee0a8

Warner Bros Discovery Inc (WBD)

Financials