Company: WBD
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437107-25-000216
Chunk: 166

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 166
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 $2,598 (8)%(8)%$7,422 $8,070 (8)%(7)%Advertising1,186 1,490 (20)%(21)%4,897 5,691 (14)%(15)%Content217 833 (74)%(74)%884 1,396 (37)%(36)%Other93 89 4 %3 %257 250 3 %1 %Total revenues3,883 5,010 (22)%(23)%13,460 15,407 (13)%(13)%Costs of revenues, excluding depreciation and amortization1,520 2,185 (30)%(30)%6,439 7,088 (9)%(9)%Selling, general and administrative661 710 (7)%(7)%2,014 2,087 (3)%(4)%Adjusted EBITDA - Global Linear Networks segment1,702 2,115 (20)%(20)%5,007 6,232 (20)%(19)%Depreciation and amortization758 1,048 2,494 3,205 Employee share-based compensation— — 1 — Restructuring and other charges16 5 57 58 Transaction and integration costs— 3 — 3 Impairment and amortization of fair value step-up for content— — 440 419 Impairments and loss on dispositions27 5 30 9,159 Operating income (loss)$901 $1,054 $1,985 $(6,612)

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

42

Revenues

Distribution revenue decreased 8% and 7% for the three and nine months ended September 30, 2025, respectively, primarily attributable to a 9% decline in domestic linear subscribers, and to a lesser extent, lower international affiliate rates and international subscriber declines, partially offset by a 2% increase in domestic affiliate rates for both periods. Declines in linear subscribers are expected to continue.

Advertising revenue decreased 21% and 15% for the three and nine months ended September 30, 2025, respectively, primarily attributable to audience declines in domestic networks of 26% and 25%, respectively, and the broadcast of the Olympics in Europe