Q3 2024 Warner Bros Discovery Inc Earnings Call Transcript
Key Points
- Warner Bros. Discovery Inc (WBD) has paid down over $16 billion in debt, with strong cash generation expected in the upcoming quarter.
- The company has seen significant growth in its direct-to-consumer segment, with Max adding 13 million subscribers in the third quarter alone, reaching over 110 million globally.
- Direct-to-consumer revenue increased by 9% year over year, with EBITDA up more than 175%, indicating strong financial performance.
- The renewal agreement with Charter Communications is seen as a victory, providing enhanced value to customers and creating more stability in the industry.
- Warner Bros. TV is on track for its most profitable year in scripted content in the last five years, showing strength in its TV studio business.
- The US linear television business faces well-known challenges and headwinds, impacting overall business performance.
- The games business is underperforming, with over $300 million in write-downs due to underperforming releases, affecting studio profits.
- Inconsistency remains an issue in the motion picture studio, highlighted by the disappointing results of Joker 2.
- Total company advertising declined by 7% ex-FX during the third quarter, with networks advertising down 13% ex-FX.
- The company faces continued secular revenue declines in advertising and affiliate revenues in the linear networks business.
Ladies and gentlemen, welcome to the Warner Bros. Discovery's third-quarter 2024 earnings conference call. (Operator Instructions) Additionally, please be advised that today's conference call is being recorded.
I would now like to hand the call over to Mr. Andrew Slabin, Executive Vice President, Global Investor Strategy. Sir, you may now begin.
Good morning, and thank you for joining us for Warner Bros. Discovery's Q2 earnings call. Joining me today is David Zaslav, President and Chief Executive Officer; Gunnar Wiedenfels, Chief Financial Officer; and JB Perrette, CEO and President, Global Streaming and Games.
Today's presentation will include forward-looking statements that we made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements may include comments regarding the company's future business plans, prospects, and financial performance, and involve risks and uncertainties
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