Company: WBD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001437107-25-000096
Chunk: 12

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 12
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 %Other78 77 1 %1 %Total revenues4,774 5,125 (7)%(6)%Costs of revenues, excluding depreciation and amortization2,327 2,372 (2)%(2)%Selling, general and administrative654 634 3 %3 %Adjusted EBITDA - Global Linear Networks segment1,793 2,119 (15)%(14)%Depreciation and amortization907 1,105 Employee share-based compensation1 — Restructuring and other charges16 11 Transaction and integration costs— 1 Impairment and amortization of fair value step-up for content130 125 Impairments and loss on dispositions2 — Operating income$737 $877 

Unless otherwise indicated, the discussion of percent changes below is on an ex-FX basis.

Revenues

Distribution revenue decreased 8% for the three months ended March 31, 2025, primarily attributable to a 9% decline in domestic linear subscribers, partially offset by a 2% increase in domestic affiliate rates. Additionally, distribution revenues were negatively impacted by lower international affiliate rates and international subscriber declines. Declines in linear subscribers are expected to continue.

Advertising revenue decreased 11% for the three months ended March 31, 2025, primarily attributable to audience declines in domestic networks of 27%.

Content revenue increased 44% for the three months ended March 31, 2025, primarily attributable to timing of third party licensing deals.

Other revenue increased 1% for the three months ended March 31, 2025.

Costs of Revenues

Costs of revenues decreased 2% for the three months ended March 31, 2025, primarily attributable to timing of content, production, and news related spend.

36

Selling, General and Administrative

Selling, general and administrative expenses increased 3% for the three months ended March 31, 2025, primarily attributable to higher marketing expenses.

Adjusted EBITDA 

Adjusted EBITDA decreased 14% for the three months ended March 31, 2025.

Corporate

The following table presents our Adjusted EBITDA and a reconciliation of Adjusted EBITDA to operating loss (in millions).

 Three Months Ended March 31,  20252024% Change% Change (ex-FX)Adjusted EBITDA - Corporate$(233)$(346)33 %