Company: WBD
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001437107-25-000031
Chunk: 95

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 95
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uring and other charges447 585 (24)%(23)%Impairments and loss on dispositions9,603 77 NMNMTotal costs and expenses49,353 42,869 15 %16 %Operating loss(10,032)(1,548)NMNMInterest expense, net(2,017)(2,221)Gain on extinguishment of debt632 17 Loss from equity investees, net(121)(82)Other income (expense), net150 (29)Loss before income taxes(11,388)(3,863)Income tax (expense) benefit(94)784 Net loss(11,482)(3,079)Net loss (income) attributable to noncontrolling interests129 (38)Net loss (income) attributable to redeemable noncontrolling interests42 (9)Net loss available to Warner Bros. Discovery, Inc.$(11,311)$(3,126)

NM - Not meaningful

Unless otherwise indicated, the discussion of percent changes below is on an ex-FX basis. The ex-FX percent changes of line items below operating loss in the table above are not included as the activity is principally in U.S. dollars.

Revenues

Distribution revenues are generated from fees charged to network distributors, which include cable, DTH satellite, telecommunications and digital service providers, and DTC subscribers. The largest component of distribution revenue is comprised of linear distribution rights to our networks from cable, DTH satellite, and telecommunication service providers. We have contracts with distributors representing most cable and satellite service providers around the world, including the largest operators in the U.S. and major international distributors. Distribution revenues are largely dependent on the rates negotiated in the agreements, the number of subscribers that receive our networks, the number of platforms covered in the distribution agreement, and the market demand for the content that we provide. From time to time, renewals of multi-year carriage agreements include significant year one market adjustments to reset subscriber rates. In some cases, we have provided distributors launch incentives, in the form of cash payments or free periods, to carry our networks. 

Distribution revenue decreased 1% in 2024, primarily attributable to an 8% decline in Networks domestic linear subscribers and our exit from our regional sports business (“AT&T SportsNets”) in the U.S., which had an unfavorable impact of $225 million for the year, partially offset by a 5% increase in domestic contractual affiliate rates, a 20% increase