NASDAQ$WBD

Warner Bros Discovery Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Warner Bros. Discovery reported mixed results for Q1 2023, with revenue decreasing but DTC subscribers increasing.

Warner Bros. Discovery's Q1 2023 results revealed a net loss but also showed positive strides in DTC subscriber growth and adjusted EBITDA. The company is focusing on restructuring and deleveraging its balance sheet, with expectations of profitability in the U.S. DTC business ahead of schedule.

  • Total revenues were $10,700 million, a decrease of 5% ex-FX compared to the prior year quarter.
  • Net loss available to Warner Bros. Discovery, Inc. was $(1,069) million, including significant pre-tax amortization and restructuring expenses.
  • Adjusted EBITDA was $2,611 million, an increase of 12% ex-FX compared to the prior year quarter.
  • Global DTC subscribers increased by 1.6 million to reach 97.6 million.

Headline financials

Total Revenue

$10.7B

Previous: $3.16B+238.7%
EPS (adj)

-$0.44

Previous: $0.69-163.8%
Capital Expenditures

-$299M

Previous: -$85M-251.8%
Free Cash Flow

-$1.37B

Previous: $371M-468.7%
Net Income

-$1.07B

Previous: $456M-334.4%
Operating Income

-$557M

Previous: $353M-257.8%
Gross Profit

$4.02B

Previous: $1.92B+108.8%
Cash & Equivalents

$2.59B

Previous: $4.16B-37.7%
Total Assets

$131B

Previous: $33.8B+286.4%
Stock-Based Comp

$111M

Previous: $60M+85.0%

Revenue & EPS history

Warner Bros Discovery · Revenue · Quarterly

$10.7B

Q1 2023+238.7%vs Q1 2022
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

Warner Bros Discovery · $3.21B total across 1 segment · Q1 2023

  • Studios
    $3.21B

Forward guidance

Warner Bros. Discovery anticipates U.S. DTC business profitability for 2023 and focuses on driving free cash flow and reducing debt.

Tailwinds

  • Meaningful turn in DTC segment EBITDA.
  • Increase in net DTC subscribers.
  • Expected profitability of the U.S. DTC business in 2023, ahead of previous guidance.
  • Positioned to drive free cash flow.
  • Focused on deleveraging the balance sheet.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-1.5%

Avg return

Earnings day

-1.3%

Avg return

5 days after

-1.4%

Avg return

30 days after

37%

26 / 71 earnings

Positive

+11.6%

Q3 2019

Best reaction

-17.7%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.1%-0.6%-3.6%
Q4 2025-0.4%-2.4%-6.3%
Q3 2025-1.5%+1.3%+14.6%
Q2 2025-8.0%+1.6%+2.1%
Q1 2025+5.3%+7.2%+14.7%
Q4 2024+4.8%+7.8%-1.2%
Q3 2024+9.5%+10.0%+27.2%
Q2 2024-7.3%-11.4%-4.6%
Q1 2024+4.5%+9.7%+6.0%
Q4 2023-10.6%-8.9%-11.7%
Q3 2023-17.0%-14.8%-1.2%
Q2 2023+11.3%+14.9%-7.9%
Q1 2023+9.2%+5.8%-4.7%
Q4 2022+0.8%+1.3%-9.2%
Q3 2022-17.7%-20.7%-8.9%
Q2 2022-12.7%-21.6%-21.8%
Q1 2022-12.4%-15.6%-16.4%
Q4 2021+0.1%-0.4%-3.0%
Q3 2021+3.7%+7.0%-2.3%
Q2 2021-2.6%-0.2%-0.5%
Q1 2021-2.7%-7.4%-17.7%
Q4 2020+4.3%+4.4%+22.0%
Q3 2020+1.9%+11.6%+38.7%
Q2 2020-1.7%-1.0%+3.6%
Q1 2020-3.4%-4.3%+16.6%
Q4 2019-2.9%-0.9%-28.1%
Q3 2019+11.6%+11.0%+15.7%
Q2 2019+2.3%+1.0%-6.1%
Q1 2019-5.0%-7.1%-11.8%
Q4 2018-2.0%-0.4%-7.9%
Q3 2018-0.3%-2.9%-12.5%
Q2 2018-4.7%-3.5%+2.6%
Q1 2018-4.7%+2.7%-2.7%
Q4 2017-3.4%-2.0%-14.9%
Q3 2017-13.8%-9.6%+1.6%
Q2 2017-9.0%-11.5%-17.2%
Q1 2017-4.2%-4.3%-4.3%
Q4 2016-1.9%-1.2%-3.0%
Q3 2016-3.5%-1.8%+4.0%
Q2 2016+8.3%+6.3%+3.7%
Q1 2016+6.4%
Q4 2015-5.1%
Q3 2015+0.8%
Q2 2015-9.1%
Q1 2015-4.1%
Q4 2014+0.1%
Q3 2014-3.4%
Q2 2014-0.5%
Q1 2014-6.5%
Q4 2013-2.5%
Q3 2013+4.1%
Q2 2013-5.5%
Q1 2013-2.6%
Q4 2012-1.7%
Q3 2012-4.5%
Q2 2012-3.2%
Q1 2012-6.7%
Q2 2011-0.7%
Q4 2011-0.7%
Q3 2011+5.1%
Q1 2011+3.5%
Q2 2010-0.9%
Q4 2010-0.9%
Q3 2010-4.1%
Q1 2009+4.9%
Q1 2010-1.3%
Q4 2008+0.2%
Q4 2007+0.2%
Q2 2009+0.2%
Q4 2009+0.2%
Q3 2009+4.4%

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