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Warner Bros. Discovery, Inc. (NASDAQ:WBD) Q3 2023 Earnings Call Transcript

Warner Bros. Discovery, Inc. (NASDAQ:WBD) Q3 2023 Earnings Call Transcript November 8, 2023

Warner Bros. Discovery, Inc. misses on earnings expectations. Reported EPS is $-0.17 EPS, expectations were $-0.09.

Operator: Ladies and gentlemen, welcome to the Warner Bros. Discovery Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation there will be a question-and-answer session. Additionally, please be advised that today's conference call is being recorded. I would now like to hand the conference over to Mr. Andrew Slabin, Executive Vice President, Global Investor Strategy. Sir, you may begin.

Andrew Slabin: Good morning and welcome to Warner Bros. Discovery's Q3 earnings call. With me today is David Zaslav, President and CEO; Gunnar Wiedenfels, our CFO; and JB Perrette, CEO and President, Global Streaming and Games. Before we start, I'd like to remind you that today's conference call will include forward-looking statements that we make pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements include comments regarding the company's future business plans, prospects and financial performance. These statements are made based on management's current knowledge and assumptions about future events and involve risks and uncertainties that could cause actual results to differ materially from our expectations.

A movie theater auditorium filled with an audience enjoying a blockbuster film.
A movie theater auditorium filled with an audience enjoying a blockbuster film.

In providing projections and other forward-looking statements, the company disclaims any intent or obligation to update them. For additional information on important factors that could affect these expectations, please see the company's filings with the U.S. Securities and Exchange Commission, including but not limited to the company's most recent annual report on Form 10-K and its reports on Form 10-Q and Form 8-K. A copy of our Q3 earnings release, trending schedule and accompanying slide deck will be available on our website at ir.wbd.com. And with that, I am pleased to turn the call over to David.

David Zaslav: Hello, everyone and thank you for joining us. Let me start by saying that we are hopeful we will reach a resolution to the SAG-AFTRA strike soon. We made a last and final offer which meant virtually all of the Union's goals and includes the highest wage increase in 40 years and believe it provides for a positive outcome for all involved. We recognize that we need our creative partners to feel valued and rewarded, and look forward to both sides getting back to the business of telling great stories. As the strikes underscored, these are challenging times. Our industry is facing accelerated disruption and a rapidly changing marketplace, and to succeed long-term, we must be flexible and adaptable and have a strong arsenal of assets that will enable us to maintain momentum amidst ever evolving consumer behavior.

And at Warner Bros. Discovery, we are and we do. Over the last 19 months, we have been relentlessly focused on reinventing this company, repositioning it as a more stable, efficient free cash flow generating business. While we are and always will be a work in progress and while we are thoughtfully navigating industry wide challenges like a strained advertising market, our teams continue to execute on our strategy. More broadly, we generated over $2 billion in free cash flow in Q3 and are on track to meaningfully exceed $5 billion for the year. This has made it possible for us to aggressively pay down our debt, which we've reduced by nearly $12 billion since launching the company last year and as we've said, by the end of the fourth quarter, we will be meaningfully below 4 times net levered.

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To continue reading the Q&A session, please click here.