NASDAQ$WBD

Warner Bros Discovery Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Warner Bros. Discovery's Q2 2023 results reflected a decrease in revenue but an increase in adjusted EBITDA and free cash flow.

Warner Bros. Discovery reported Q2 revenues of $10.358 billion, a decrease of 4% ex-FX. Net loss was $(1,240) million, while adjusted EBITDA increased by 23% ex-FX to $2,149 million. The company generated $1.722 billion in free cash flow and reduced its global DTC subscribers by 1.8 million to 95.8 million.

  • Total revenues reached $10,358 million, but decreased 4% ex-FX compared to the prior year quarter.
  • Net loss was $(1,240) million, including significant pre-tax amortization and restructuring expenses.
  • Adjusted EBITDA increased 23% ex-FX to $2,149 million compared to the prior year quarter.
  • Free cash flow increased to $1,722 million, and $1.6 billion of debt was repaid during the quarter.

Headline financials

Total Revenue

$10.4B

Previous: $9.83B+5.4%
EPS (adj)

-$0.51

Previous: -$1.05+51.4%
Capital Expenditures

-$591M

Previous: -$307M-92.5%
Free Cash Flow

-$1.83B

Previous: -$3.73B+50.8%
Net Income

-$1.24B

Previous: -$3.42B+63.7%
Operating Income

-$906M

Previous: -$3.64B+75.1%
Gross Profit

$3.72B

Previous: $3.2B+16.2%
Cash & Equivalents

$3.03B

Previous: $2.58B+17.6%
Total Assets

$129B

Previous: $142B-9.6%
Stock-Based Comp

$137M

Previous: $150M-8.7%

Revenue & EPS history

Warner Bros Discovery · Revenue · Quarterly

$10.4B

Q2 2023+5.4%vs Q2 2022
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

Warner Bros Discovery · $2.58B total across 1 segment · Q2 2023

  • Studios
    $2.58B-7.7%

Forward guidance

Warner Bros. Discovery is bullish with respect to our delevering story and expect to be comfortably below 4.0x levered by the end of the year and at our target of 2.5-3.0x gross leverage by the close of 2024.

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 Q2 2023

Historical avgQ2 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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