Company: WBD
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001437107-25-000031
Chunk: 102

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 102
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 to operating (loss) income (in millions). Year Ended December 31, 20242023% Change% Change (ex-FX)Revenues:Distribution$10,680 $11,521 (7)%(6)%Advertising7,306 8,342 (12)%(12)%Content1,848 1,005 84 %83 %Other341 376 (9)%(10)%Total revenues20,175 21,244 (5)%(4)%Costs of revenues, excluding depreciation and amortization9,238 9,342 (1)%— %Selling, general and administrative2,788 2,839 (2)%(1)%Adjusted EBITDA8,149 9,063 (10)%(10)%Depreciation and amortization4,172 4,961 Restructuring and other charges85 201 Transaction and integration costs2 3 Impairment and amortization of fair value step-up for content495 473 Inter-segment eliminations— 90 Impairments and loss on dispositions9,154 13 Operating (loss) income$(5,759)$3,322 

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

Revenues

Distribution revenue decreased 6% in 2024, primarily attributable to an 8% decline in domestic linear subscribers for the year, partially offset by a 5% increase in domestic contractual affiliate rates. In addition, the exit from the AT&T SportsNet business had an unfavorable impact of $225 million for the year. Declines in linear subscribers are expected to continue.

Advertising revenue decreased 12% in 2024, primarily attributable to audience declines in domestic networks of 18% for the year, and continued softness in the U.S. linear advertising market.

Content revenue increased by 83% in 2024, primarily attributable to the sublicensing of Olympic sports rights in Europe in the current year, which had a favorable impact of $576 million, and timing of third-party licensing deals.

Other revenue decreased 10% in 2024, primarily attributable to the timing of services provided to the unconsolidated TNT Sports UK joint venture.

Costs of Revenues

Costs of revenues was flat in 2024. Sports-related content expense increased in 2024 primarily due to the broadcast of the Olympics in Europe in the current year and