Company: WBD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001437107-25-000096
Chunk: 63

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 63
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75)%(75)%Content2,139 2,623 (18)%(17)%Other173 189 (8)%(7)%Total revenues2,314 2,821 (18)%(16)%Costs of revenues, excluding depreciation and amortization1,413 2,019 (30)%(29)%Selling, general and administrative642 618 4 %5 %Adjusted EBITDA - Studios segment259 184 41 %63 %Depreciation and amortization170 186 Employee share-based compensation— (1)Restructuring and other charges(5)11 Transaction and integration costs — 1 Impairment and amortization of fair value step-up for content36 (72)Amortization of capitalized interest for content6 17 Impairments and gain on dispositions(1)— Operating income$53 $42 

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 4% of total revenues and operating expenses for this segment for the three months ended March 31, 2025. 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 decreased 17% for the three months ended March 31, 2025, primarily attributable to a 27% decrease in theatrical product revenue and a 48% decrease in games revenue, partially offset by a 4% increase in television product revenue.

•The decrease in theatrical product revenue was attributable to lower film rental revenue and home entertainment revenue, partially offset by higher intercompany content sales. The decrease in film rental revenue was primarily due to the strong prior year performance of Dune: Part Two and Godzilla x Kong: The New Empire, which were released in the first quarter of 2024, as well as higher carryover from releases in the fourth quarter of 2023 compared to the fourth quarter of 2024. The decrease in home entertainment revenue was primarily due to the strong prior year performance of Wonka and Aquaman 2.

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