Company: WBD
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001437107-25-000031
Chunk: 104

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 104
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7 20 %

Distribution revenue increased 5% in 2024, primarily attributable to a 20% increase in subscribers and an increase in pricing following the launch of Max in Europe and Latin America in 2024, partially offset by continued domestic linear wholesale subscriber declines.

Advertising revenue increased 57% in 2024, primarily attributable to an increase in domestic ad-lite subscribers.

41

Global ARPU consisted of the following.

Year Ended December 31,20242023% Change (ex-FX)Domestic ARPU$11.89 $11.20 6 %International ARPU$3.85 $3.85 4 %Global ARPU1$7.76 $7.78 1 %

Global ARPU increased 1% in 2024, primarily attributable to subscriber growth of the ad-lite tier domestically, higher pricing, and a continuing subscriber mix shift from linear wholesale, partially offset by growth in lower ARPU international markets.

Content revenue decreased 51% in 2024, primarily attributable to fewer third-party licensing deals.

Costs of Revenues

Cost of revenues decreased 2% in 2024, primarily attributable to lower content expense commensurate with lower content revenue, partially offset by the allocation of U.S. sports from the Networks segment.

Selling, General, and Administrative Expenses

Selling, general and administrative expenses decreased 9% in 2024, primarily attributable to lower marketing costs due to the launch of Max in 2023 in the U.S., partially offset by higher overhead expenses and the continuation of Max launches internationally.

Adjusted EBITDA

Adjusted EBITDA increased $574 million in 2024. The broadcast of the Olympics in Europe negatively impacted Adjusted EBITDA by $33 million.

Corporate

The following table presents our Adjusted EBITDA and a reconciliation of Adjusted EBITDA to operating loss (in millions): Year Ended December 31,  20242023% Change% Change (ex-FX)Adjusted EBITDA$(1,260)$(1,242)(1)%(3)%Employee share-based compensation547 488 Depreciation and amortization332 294 Restructuring and other charges96 95 Transaction and integration costs239 148 Impairments and loss on dispositions388 60 Facility consolidation costs3 32 Impairment and amortization of fair value step-up for content2 (6)Inter-segment