Company: WBD
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437107-25-000192
Chunk: 81

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 81
---
 revenues, excluding depreciation and amortization2,215 1,601 38 %38 %3,628 3,620 — %— %Selling, general and administrative723 638 13 %12 %1,365 1,256 9 %8 %Adjusted EBITDA - Studios segment863 210 NMNM1,122 394 NMNMDepreciation and amortization169 174 339 360 Employee share-based compensation— — — (1)Restructuring and other charges(1)19 (6)30 Transaction and integration costs — 1 — 2 Facility consolidation costs— 1 — 1 Impairment and amortization of fair value step-up for content25 83 61 11 Amortization of capitalized interest for content3 13 9 30 Impairments and gain on dispositions— (1)(1)(1)Operating income (loss)$667 $(80)$720 $(38)

Unless otherwise indicated, the discussion of percent changes below is on an ex-FX basis. The Studios discussion below also includes intra-segment revenue and expense between product lines, which represented less than 2% and 3% of total revenues and operating expenses for this segment for the three and six months ended June 30, 2025, respectively. Intra-segment revenue and expense are eliminated at the Studios segment level.

Fluctuations in results for our Studios segment may occur due to various factors, including (but not limited to) the timing and number of new film releases each quarter, the timing of marketing expenses recognized relative to (i.e., prior to) a film’s release, and the mix of content distributed each period.

Revenues

Content revenue increased 59% for the three months ended June 30, 2025, primarily attributable to a 115% increase in television product revenue and a 38% increase in theatrical product revenue, partially offset by a 14% decrease in games revenue.

•The increase in television product revenue was attributable to higher intercompany content licensing, primarily due to the timing of renewals.

•The increase in theatrical product revenue was attributable to higher film rental revenue, partially offset by lower content licensing. The increase in film rental revenue was primarily due to the strong performance of A Minecraft Movie, Sinners, and Final Destination Bloodlines, which were released in the second quarter of 202