Company: WBD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001437107-25-000096
Chunk: 51

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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 to their impact on comparability between periods. Integration costs include transformative system implementations and integrations, such as Enterprise Resource Planning systems, and may take several years to complete. The Company also excludes the depreciation of fixed assets and amortization of intangible assets, amortization of purchase accounting fair value step-up for content (which is included in consolidated costs of revenues), and amortization of capitalized interest for content, as these amounts do not represent cash payments in the current reporting period. We prospectively updated certain corporate allocations at the beginning of 2025. The impact to prior periods was immaterial. The tables below present summarized financial information for each of the Company’s reportable segments (in millions).Revenues Three Months Ended March 31,20252024Streaming$2,656 $2,460 Studios2,314 2,821 Global Linear Networks4,774 5,125 Corporate— 1 Inter-segment eliminations (765)(449)Total revenues$8,979 $9,958 Reconciliation of Revenues to Segment Adjusted EBITDAThree months ended March 31, 2025StreamingStudiosGlobal Linear NetworksRevenues$2,656 $2,314 $4,774 Less: Content expense (a)1,504 1,339 1,832 Personnel expense (b)186 230 496 Marketing expense220 252 104 Other segment expenses (c)407 234 549 Segment Adjusted EBITDA$339 $259 $1,793 

26

WARNER BROS. DISCOVERY, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(unaudited)

Three months ended March 31, 2024StreamingStudiosGlobal Linear NetworksRevenues$2,460 $2,821 $5,125 Less: Content expense (a)1,567 1,950 1,843 Personnel expense (b)192 240 548 Marketing expense289 289 88 Other segment expenses (c)326 158 527 Segment Adjusted EBITDA$86 $184 $2,119 (a) Content expense includes amortization, impairments, participations, residuals, development expense, and production costs, including talent costs, and is a component of costs of revenues. Content expense excludes content impairments and other development costs recorded in restructuring and other charges, amortization of purchase accounting fair