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
Quarterly Data

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Warner Bros. Discovery Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Advertising
Distribution
Content
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
Asset impairment and gain (loss) on disposition and disposal groups
Operating income (loss)
Interest expense, net
Loss on extinguishment of debt
Income (loss) from equity investees, net
Other income (expense), net
Income (loss) before income taxes
Income tax (expense) benefit
Net income (loss)
Net income attributable to noncontrolling interests and redeemable noncontrolling interests
Net income (loss) available to Warner Bros. Discovery, Inc.

Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

Advertising Expense
The advertising expense as a percentage of revenues fluctuated over the observed periods, generally ranging between approximately 40% and 56% until early 2022. A notable decline occurred starting from March 31, 2022, falling sharply to around 27.69% and further decreasing to about 20.79% by September 30, 2022, indicating a significant reduction in advertising expenditure relative to revenues in recent quarters.
Distribution Expense
Distribution costs consistently represented a substantial portion of revenues, usually between 40% and 54%. There was some fluctuation, but the expense as a percentage of revenues remained relatively stable until mid-2022 when it increased from approximately 42.8% to over 50% by September 2022, suggesting rising distribution costs in the latest quarters.
Content Expense
Content-related expenses were recorded only in the later periods, starting in March 2022, reflecting 10.22% of revenues and increasing significantly to 25.77% by September 2022. This suggests a new or expanded focus on content costs contributing materially to the cost structure in the most recent quarters.
Other Expenses
Other expense items generally remained low as a percentage of revenues, mostly below 5%, with occasional spikes such as the 10.58% in March 2018 and 9.94% in September 2021. The most recent data shows relatively low values, indicating limited impact from other expenses in recent periods.
Costs of Revenues (Excluding Depreciation and Amortization)
These costs fluctuated significantly, generally within a range of approximately -30% to -45% of revenues. However, from March 31, 2022 onward, sharp increases in these costs were observed, reaching as high as -67.42% in June 2022 and -57.28% in September 2022, signifying a substantial increase in operating costs or a change in cost recognition.
Gross Profit
Gross profit margins exhibited variability, mostly between 55% and 68% of revenues until early 2022. Notably, there was a marked decline in gross profit to around 32.58% and 42.72% during the mid and late 2022 periods, reflecting the impact of increased costs on profitability.
Selling, General and Administrative (SG&A) Expenses
SG&A expenses as a percentage of revenues fluctuated mostly between approximately 22% and 33%, with occasional higher spikes up to nearly 38%. In 2022, these expenses increased again, reaching over 36% in June 2022, before declining to about 26% in September 2022, showing some variation in administrative efficiency or investment.
Depreciation and Amortization
Depreciation and amortization expenses generally increased over the years, rising from about 5% in early 2017 to over 22% by September 2022. This upward trend indicates growing capital expenditures or amortization of acquired intangible assets over time.
Impairment and Restructuring Charges
Severe impairment charges were recognized in the quarter ending December 31, 2017, at -71.19% of revenues, followed by smaller and sporadic impairment amounts in subsequent periods. Restructuring and other charges also spiked notably in March 2018 (-10.45%) and June 2022 (-10.51%) and increased further to -15.48% in September 2022, suggesting recurring costs associated with business realignments or cost-cutting initiatives.
Operating Income (Loss)
Operating income showed significant volatility. Early periods generally reflected positive margins, often above 20%. However, there was a substantial loss in December 2017 (-44.9%) corresponding with the noted impairment charges. Operating income recovered subsequently but experienced another sharp decline in June and September 2022, reaching -37.03% and -22.29%, underscoring recent operational challenges.
Interest Expense and Loss on Extinguishment of Debt
Interest expense tended to decline modestly over time, from about 5.6% to 5.2%. Losses on extinguishment of debt were sporadic, with higher charges in early 2020 (-2.79%) and lower impacts at other times.
Income from Equity Investees and Other Income (Expense), Net
Income from equity investees consistently contributed marginally, with minor positive and negative fluctuations around zero. Other income (expense) showed variability, with occasional significant positive or negative contributions, notably a strong positive spike of 15.51% in March 2022 followed by a return to near zero, indicating irregular non-operating items affecting income.
Income Before Taxes and Net Income
Income before income taxes followed the operating income trend with pronounced fluctuations—from positive results exceeding 20% of revenues to severe losses like -56.33% in December 2017. Recent quarters in 2022 exhibited negative pre-tax income (-43.19% and -29.02%), mirroring challenges in underlying operations. Net income similarly showed volatility, with strong positive margins in some quarters but large losses in December 2017 and mid-2022. The net income available to Warner Bros. Discovery, Inc. mirrored these trends closely, indicating that the majority of net results are attributable to the parent company's shareholders.