Warner Bros. Discovery, Inc.


SKU: WBD-1 Category:


Warner Bros. Discovery, Inc. delivered disappointing results in the third quarter as it could not meet Wall Street’s revenue and earnings expectations. The company highlighted a Q3 free cash flow of over $2 billion, with a projected yearly total surpassing $5 billion. This achievement enabled aggressive debt reduction, amounting to nearly $12 billion since the company’s inception a year ago, promising a net leverage below 4x by the end of Q4. While prioritizing debt management, Discovery embraces the opportunity to allocate capital toward growth initiatives. Acknowledging the underutilization of their iconic IPs like Game of Thrones and Harry Potter, Discovery’s team plans to optimize their potential through focused franchise management, welcoming a new Global Head of Franchise. The positive Q3 results showcase growth in EBITDA, with strong engagement attributed to live programming additions. Despite a temporary decline in subscribers, anticipation builds for a content-rich 2024 featuring shows like True Detective: Night Country and The Regime. Expanding its reach, CNN Max, a 24/7 streaming service, successfully attracts a younger demographic. Discovery further acquired Turkish drama streamer BluTVAs part of this collaboration, the company received a 35% ownership in BluTV and the option to increase its investment in the streamer.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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