Company: WBD
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437107-25-000192
Chunk: 169

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 169
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Distribution$2,477 $2,675 (7)%(7)%$5,035 $5,472 (8)%(7)%Advertising1,953 2,214 (12)%(13)%3,711 4,201 (12)%(12)%Content287 299 (4)%(2)%667 563 18 %19 %Other86 84 2 %(1)%164 161 2 %— %Total revenues4,803 5,272 (9)%(9)%9,577 10,397 (8)%(8)%Costs of revenues, excluding depreciation and amortization2,592 2,531 2 %2 %4,919 4,903 — %— %Selling, general and administrative699 743 (6)%(6)%1,353 1,377 (2)%(2)%Adjusted EBITDA - Global Linear Networks segment1,512 1,998 (24)%(25)%3,305 4,117 (20)%(19)%Depreciation and amortization829 1,052 1,736 2,157 Employee share-based compensation— — 1 — Restructuring and other charges25 42 41 53 Transaction and integration costs— (1)— — Impairment and amortization of fair value step-up for content310 294 440 419 Impairments and loss on dispositions1 9,154 3 9,154 Operating income (loss)$347 $(8,543)$1,084 $(7,666)

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

Revenues

Distribution revenue decreased 7% for the three and six months ended June 30, 2025, 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 13% and 12% for the three and six months ended June 30, 2025, respectively, primarily attributable to audience declines in domestic networks of 23% and 25%, respectively, and the broadcast of the NCAA Final Four and championship game in 202