Warner Bros. Discovery Reports Third-Quarter 2024 Results

(New York, NY) - November 7, 2024- Warner Bros. Discovery, Inc. (the "Company") (Nasdaq: WBD) today reported financial results for the quarter ended September 30, 2024. The Company will conduct a conference call today at 8:00 a.m. ET to discuss the results. A link to the live webcast of the conference call will be available in the "Investor Relations" section of the Company's website at https://ir.wbd.com/.

A telephone replay of the call will be available approximately two hours after the completion of the call until November 14, 2024. The replay can be accessed via phone by dialing +1 800-727-6189 or +1 402-220-2671. A replay of the audio webcast will also be available in the "Investor Relations" section of the Company's website for twelve months.

David Zaslav, President and Chief Executive Officer of Warner Bros. Discovery said, "Warner Bros. Discovery's Q3 results demonstrate once again that while we continue to confront extraordinary disruption in our environment, the strategy we have undertaken to ready Warner Bros. Discovery for future success is showing important results. Thanks to our rapid international expansion and continued investment in high quality, diverse content, we saw momentum accelerate in our global Direct-to-Consumer business in Q3. In total, Max delivered 7.2 million net subscriber adds, the strongest quarterly gain since the platform's launch, resulting in healthy subscriber-related revenue growth and meaningful progress toward achieving our 2025 Direct-to-Consumer segment financial objectives. Likewise, our recently announced strategic partnership with Charter Communications, for both linear network distribution and bundling of Max, not only reinforced the value of our content portfolio, but represented our willingness to work with our partners to enhance the consumers' experience as our industry undergoes transformation."

Q3 Financial Summary & Operational Highlights:

• Q3 total revenues were $9.6 billion, a 3% ex-FX decrease compared to the prior year quarter.
• Net income available to Warner Bros. Discovery, Inc. was $0.1 billion, which includes $1.6 billion of pre-tax acquisition-related amortization of intangibles, content fair value step-up, and restructuring expenses.
• Q3 total Adjusted EBITDA was $2.4 billion, a 18% ex-FX decrease compared to the prior year quarter.
• Q3 cash provided by operating activities was $0.8 billion. Free cash flow was $0.6 billion.
• Repaid or repurchased $0.9 billion of debt during Q3, ending the quarter with $3.5 billion of cash on hand, $40.7 billion of gross debt, and 4.2x net leverage.
• Global DTC subscribers were 110.5 million at the end of Q3, an increase of 7.2 million subscribers vs. Q2, our largest ever quarterly growth in subscribers since the launch of Max and with subscriber growth across all regions.
• Global DTC ARPU was $7.84, a 1% ex-FX increase vs. the prior year quarter.
• Announced multi-year renewal of Charter carriage agreement for the entire suite of WBD cable networks and the inclusion of Max across all Spectrum TV Select packages.
• The Olympic Games Paris 2024 generated more than 215 million cumulative views across WBD platforms, a 23% increase vs. the Tokyo 2020 games.
• The Penguin ranks as one of the largest premieres on Max, with audiences similar to The Last of Us and House of the Dragon.

WARNER BROS. DISCOVERY REPORTS THIRD-QUARTER 2024 RESULTS

About Warner Bros. Discovery:

Warner Bros. Discovery is a leading global media and entertainment company that creates and distributes the world's most differentiated and complete portfolio of branded content across television, film, streaming and gaming. Available in more than 220 countries and territories and 50 languages, Warner Bros. Discovery inspires, informs and entertains audiences worldwide through its iconic brands and products including: Discovery Channel, Max, discovery+, CNN, DC, TNT Sports, Eurosport, HBO, HGTV, Food Network, OWN, Investigation Discovery, TLC, Magnolia Network, TNT, TBS, truTV, Travel Channel, MotorTrend, Animal Planet, Science Channel, Warner Bros. Motion Picture Group, Warner Bros. Television Group, Warner Bros. Pictures Animation, Warner Bros. Games, New Line Cinema, Cartoon Network, Adult Swim, Turner Classic Movies, Discovery en Español, Hogar de HGTV and others. For more information, please visit www.wbd.com.