Stock Analysis on Net
Stock Analysis on Net

Warner Bros. Discovery Inc. (NASDAQ:WBD)

$22.49

This company has been moved to the archive! The financial data has not been updated since November 4, 2022.

Common-Size Income Statement

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Warner Bros. Discovery Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Advertising
Distribution
Other
Revenues
Costs of revenues, excluding depreciation and amortization
Gross profit
Selling, general and administrative
Depreciation and amortization
Impairment of goodwill and other intangible assets
Restructuring and other charges
Gain (loss) on disposition
Operating income
Interest expense, net
Loss on extinguishment of debt
Loss from equity investees, net
Foreign currency gains (losses), net
Gains (losses) on derivative instruments, net
Interest income
Gain on sale of investment with readily determinable fair value
Change in the value of equity investments without readily determinable fair value
Change in the value of investments with readily determinable fair value
Expenses from debt modification
Other income, net
Other income (expense), net
Income (loss) before income taxes
Income tax expense
Net income (loss)
Net income attributable to noncontrolling interests and redeemable noncontrolling interests
Net income (loss) available to Discovery, Inc.

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Revenue Composition
The advertising segment as a percentage of revenues increased steadily from 44.71% in 2017 to a peak of 54.24% in 2019, before declining slightly to 50.98% by 2021. Distribution costs decreased from 50.55% in 2017 down to 43% in 2018 and maintained a relatively stable range near the mid-40% level through 2021. Other revenues as a percent of total revenues remained low and fluctuated slightly, dropping notably in 2019 and 2020 before rising again in 2021.
Gross Profit
Gross profit as a percentage of revenues showed an overall increasing trend from 61.36% in 2017, reaching the highest level of 65.73% in 2019, followed by a moderate decline to 62.1% in 2021. This suggests some improvement in core profitability before a slight contraction in the most recent years.
Cost Structure
Costs of revenues, excluding depreciation and amortization, decreased from -38.64% in 2017 to a low of -34.27% in 2019 but then increased again to -37.9% in 2021, indicating rising cost pressures in the last two years. Selling, general and administrative expenses stayed relatively stable around -25% until a sharp increase to -32.94% in 2021, potentially pointing to increased overhead or inefficiencies. Depreciation and amortization expenses surged notably from -4.8% in 2017 to over -12% in the subsequent years, maintaining this heightened level through 2021.
Special Charges and Gains
There was a significant impairment of goodwill and intangible assets recorded at -19.31% in 2017, which sharply dropped in later years to minimal or no impairment, indicating a major write-down event in 2017 followed by stabilization. Restructuring and other charges spiked to -7.11% in 2018 but remained low in other years. Gains or losses on disposition were generally minimal with some minor gains noted in 2018 and 2021.
Operating Income
Operating income as a percentage of revenues showed a strong upward trend from 10.37% in 2017 to a peak of 27.0% in 2019, followed by declines in 2020 and 2021 to 16.5%. The peak in 2019 indicates a period of strong operational performance that was not sustained through subsequent years.
Interest and Financial Expenses
Net interest expense as a portion of revenues gradually decreased from -6.91% in 2017 and 2018 to -5.19% in 2021, suggesting lower cost of debt or reduced debt levels. Loss on extinguishment of debt was present but declined from -0.79% in 2017 to negligible by 2021. Loss from equity investees declined from -3.07% in 2017 to near zero levels in later years, indicating reduced losses or improved returns from equity investments.
Other Income and Currency Impact
Foreign currency impacts fluctuated, showing negative effects in some years and positive in others, reflecting volatile currency exposures. Gains and losses on derivative instruments varied without clear trend, while other miscellaneous income/expense items were generally small and inconsistent.
Income before and after Taxes
Income before income taxes improved significantly from a negative -1.99% in 2017 to 20.59% in 2019, then declined to 11.75% by 2021, paralleling operating income trends. Income tax expense was relatively stable as a percentage of revenues but decreased in 2019, which may have contributed to higher net income in that year.
Net Income
Net income available to the company showed a substantial turnaround from a loss of -4.9% of revenues in 2017 to a positive 18.57% in 2019. Subsequently, net income moderated to 8.25% by 2021. The net income attributable to noncontrolling interests remained negative and increased slightly as a percentage of revenues through 2021.