Company: WBD
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437107-25-000192
Chunk: 150

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 150
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 for content; and •other items impacting comparability.The CODM uses this measure to assess the operating results and performance of the segments, perform analytical comparisons, identify strategies to improve performance, and allocate resources to each segment. The Company believes Adjusted EBITDA is relevant to investors because it allows them to analyze the operating performance of each segment using the same metric management uses. The Company excludes employee share-based compensation, restructuring, certain impairment charges, gains and losses on business and asset dispositions, and transaction and integration costs from the calculation of Adjusted EBITDA due 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 June 30,Six Months Ended June 30,2025202420252024Streaming$2,793 $2,568 $5,449 $5,028 Studios3,801 2,449 6,115 5,270 Global Linear Networks4,803 5,272 9,577 10,397 Corporate1 1 1 2 Inter-segment eliminations (1,586)(577)(2,351)(1,026)Total revenues$9,812 $9,713 $18,791 $19,671 Reconciliation of Revenues to Segment Adjusted EBITDAThree months ended June 30, 2025StreamingStudiosGlobal Linear NetworksRevenues$2,793 $3,801 $4,803 Less: Content expense (a)1,600 2,135 2,105 Personnel expense (b)191 232 505 Marketing expense294 363 115 Other segment expenses (c)415 208 566 Segment Adjusted EBITDA$293 $863 $1,512 

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WARNER BROS. DISCOVERY, INC