The major restructuring following the merger of Warner Bros and Discovery into a global content giant has seen the combined entity report falls in revenues and profits over the course of its last financial year, but also witness streaming subscriptions soar.
Reported financial results for the quarter and year ended 31 December 2022, Warner Bros. Discovery Q4 total revenues were $11.008 billion, a decreased of 9% ex-FX compared to the prior year quarter, on a combined basis. Net loss was $2.101 billion, including $1.850 billion in pre-tax amortisation from acquisition-related intangible assets and $1,198 million of pre-tax restructuring expenses. Q4 total adjusted EBITDA was $2.603 billion, falling 2% compared to the prior year quarter, on a combined basis. Q4 cash provided by operating activities increased to $2.846 billion and reported free cash flow increased to $2.482 billion.
For the full year, total revenues were $33.8 billion, down 3% ex-FX compared with the end of 2021 on a combined basis and annual net loss was $7.4 billion, including $6.2 billion of pre-tax amortisation from acquisition-related intangible assets and $3.8 billion of pre-tax restructuring expenses.
Looking at key business lines, yearly Studios revenues were $9.7 billion, falling 6% ex-FX year-on-year as higher theatrical film rental revenues and a record year for our Global Brands & Experiences business were more than offset by lower TV licensing and home entertainment revenues.
Networks revenues were $19.3 billion, slipping back 2% ex-FX compared with the end of 2021 as both advertising and distribution revenues declined. Advertising was said to be impacted by audience declines in domestic general entertainment and news networks, partially offset by the carriage of the NCAA Final Four and the first year of the NHL contract. Distribution was also impacted by continued subscriber declines in the US and lower affiliate rates in some European markets, partially offset by contractual affiliate rate increases in the US.
Yet the standout business line for the company was direct-to-consumer (DTC) revenues were $7.3 billion. Revenues increased 6% ex-FX as subscriber growth from our ad-lite products, higher third-party licensing of HBO content, and global retail subscriber gains were partially offset by lower wholesale revenues mainly due to the expiration of HBO Max on Amazon Channels in September 2021.
Driving this was a marked increase in subs. Global DTC subscribers increased 1.1 million to 96.1 million at the end of Q4 versus 95.0 million subscribers at the end of Q3, helped in part by the re-launch of HBO Max on Amazon Channels in December 2022.
Commenting on the annual results, Warner Bros. Discovery president and chief executive officer David Zaslav said: “With the major restructuring decisions behind us, this year we are focused on building and growing our businesses for the future, and we're off to a great start. We're seeing strong momentum across the enterprise, including our exciting long-term plans for DC Studios, the historic success of our latest HBO series The Last of Us, the significant financial and operating gains in DTC, and the record sales of our newest game Hogwarts Legacy. And with our unparalleled portfolio of assets and IP, a growing roster of exceptional creative talent, and some of the buzziest storytelling in the industry, we believe we have repositioned our businesses to take full advantage of the many opportunities ahead.”www.wbd.com.
For the full year, total revenues were $33.8 billion, down 3% ex-FX compared with the end of 2021 on a combined basis and annual net loss was $7.4 billion, including $6.2 billion of pre-tax amortisation from acquisition-related intangible assets and $3.8 billion of pre-tax restructuring expenses.
Looking at key business lines, yearly Studios revenues were $9.7 billion, falling 6% ex-FX year-on-year as higher theatrical film rental revenues and a record year for our Global Brands & Experiences business were more than offset by lower TV licensing and home entertainment revenues.
Networks revenues were $19.3 billion, slipping back 2% ex-FX compared with the end of 2021 as both advertising and distribution revenues declined. Advertising was said to be impacted by audience declines in domestic general entertainment and news networks, partially offset by the carriage of the NCAA Final Four and the first year of the NHL contract. Distribution was also impacted by continued subscriber declines in the US and lower affiliate rates in some European markets, partially offset by contractual affiliate rate increases in the US.
Yet the standout business line for the company was direct-to-consumer (DTC) revenues were $7.3 billion. Revenues increased 6% ex-FX as subscriber growth from our ad-lite products, higher third-party licensing of HBO content, and global retail subscriber gains were partially offset by lower wholesale revenues mainly due to the expiration of HBO Max on Amazon Channels in September 2021.
Driving this was a marked increase in subs. Global DTC subscribers increased 1.1 million to 96.1 million at the end of Q4 versus 95.0 million subscribers at the end of Q3, helped in part by the re-launch of HBO Max on Amazon Channels in December 2022.
Commenting on the annual results, Warner Bros. Discovery president and chief executive officer David Zaslav said: “With the major restructuring decisions behind us, this year we are focused on building and growing our businesses for the future, and we're off to a great start. We're seeing strong momentum across the enterprise, including our exciting long-term plans for DC Studios, the historic success of our latest HBO series The Last of Us, the significant financial and operating gains in DTC, and the record sales of our newest game Hogwarts Legacy. And with our unparalleled portfolio of assets and IP, a growing roster of exceptional creative talent, and some of the buzziest storytelling in the industry, we believe we have repositioned our businesses to take full advantage of the many opportunities ahead.”www.wbd.com.
