Name: Warner Bros. Discovery Inc. (NASDAQ:WBD) | Income Statement (Quarterly)
Creator: Stock Analysis on Net

Income Statement
Quarterly Data

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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

US$ in millions

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	2,042)	2,721)	1,476)	1,705)	1,458)	1,637)	1,415)	1,602)	1,306)	1,273)	1,402)	1,597)	1,413)	1,619)	1,415)	1,574)	1,365)	1,563)	1,012)	876)	705)	805)	687)
Distribution	4,990)	4,838)	1,352)	1,352)	1,379)	1,368)	1,310)	1,219)	1,199)	1,225)	1,223)	1,204)	1,201)	1,206)	1,224)	1,149)	1,152)	1,186)	1,051)	881)	881)	857)	855)
Content	2,531)	2,064)	323)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Other	260)	204)	8)	130)	313)	57)	67)	65)	56)	43)	58)	73)	64)	60)	68)	86)	75)	96)	244)	107)	65)	83)	71)
Revenues	9,823)	9,827)	3,159)	3,187)	3,150)	3,062)	2,792)	2,886)	2,561)	2,541)	2,683)	2,874)	2,678)	2,885)	2,707)	2,809)	2,592)	2,845)	2,307)	1,864)	1,651)	1,745)	1,613)
Costs of revenues, excluding depreciation and amortization	(5,627)	(6,625)	(1,236)	(1,067)	(1,529)	(1,055)	(969)	(1,129)	(1,003)	(810)	(918)	(1,037)	(914)	(938)	(930)	(946)	(934)	(995)	(1,060)	(745)	(670)	(634)	(607)
Gross profit	4,196)	3,202)	1,923)	2,120)	1,621)	2,007)	1,823)	1,757)	1,558)	1,731)	1,765)	1,837)	1,764)	1,947)	1,777)	1,863)	1,658)	1,850)	1,247)	1,119)	981)	1,111)	1,006)
Selling, general and administrative	(2,589)	(3,538)	(1,040)	(1,069)	(944)	(952)	(1,051)	(809)	(633)	(635)	(645)	(793)	(660)	(709)	(626)	(657)	(667)	(687)	(609)	(507)	(457)	(389)	(415)
Depreciation and amortization	(2,233)	(2,266)	(525)	(539)	(341)	(341)	(361)	(358)	(341)	(334)	(326)	(333)	(322)	(320)	(372)	(397)	(398)	(410)	(193)	(90)	(80)	(80)	(80)
Impairment of goodwill and other intangible assets	—)	—)	—)	—)	—)	—)	—)	(86)	—)	(38)	—)	—)	(155)	—)	—)	—)	—)	—)	—)	(1,327)	—)	—)	—)
Restructuring and other charges	(1,521)	(1,033)	(5)	(3)	(7)	(7)	(15)	(16)	(53)	(7)	(15)	(6)	(8)	(7)	(5)	(98)	(224)	(187)	(241)	(32)	(11)	(8)	(24)
Asset impairment and gain (loss) on disposition and disposal groups	(43)	(4)	—)	(1)	—)	72)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	84)	—)	—)	—)	(4)	—)
Operating income (loss)	(2,190)	(3,639)	353)	508)	329)	779)	396)	488)	531)	717)	779)	705)	619)	911)	774)	711)	369)	650)	204)	(837)	433)	630)	487)
Interest expense, net	(555)	(511)	(153)	(154)	(159)	(157)	(163)	(163)	(161)	(161)	(163)	(171)	(163)	(161)	(182)	(171)	(185)	(196)	(177)	(157)	(136)	(91)	(91)
Loss on extinguishment of debt	—)	—)	—)	(3)	(6)	(1)	—)	—)	(5)	(71)	—)	—)	—)	(23)	(5)	—)	—)	—)	—)	—)	—)	—)	(54)
Income (loss) from equity investees, net	(78)	(43)	(14)	2)	(9)	(7)	(4)	(43)	(18)	(23)	(21)	18)	(11)	(20)	11)	(10)	9)	(40)	(22)	(89)	(27)	(42)	(53)
Other income (expense), net	(28)	(51)	490)	(170)	78)	106)	68)	134)	(28)	(6)	(58)	11)	(1)	9)	(27)	(36)	(15)	(47)	(22)	33)	(106)	(24)	(13)
Income (loss) before income taxes	(2,851)	(4,244)	676)	183)	233)	720)	297)	416)	319)	456)	537)	563)	444)	716)	571)	494)	178)	367)	(17)	(1,050)	164)	473)	276)
Income tax (expense) benefit	566)	836)	(201)	(92)	(36)	(2)	(106)	(98)	11)	(156)	(130)	(52)	(147)	271)	(153)	(195)	(43)	(123)	20)	(87)	59)	(93)	(55)
Net income (loss)	(2,285)	(3,408)	475)	91)	197)	718)	191)	318)	330)	300)	407)	511)	297)	987)	418)	299)	135)	244)	3)	(1,137)	223)	380)	221)
Net income attributable to noncontrolling interests and redeemable noncontrolling interests	(23)	(10)	(19)	(53)	(41)	(46)	(51)	(47)	(30)	(29)	(30)	(35)	(35)	(40)	(34)	(30)	(18)	(28)	(11)	(7)	(5)	(6)	(6)
Net income (loss) available to Warner Bros. Discovery, Inc.	(2,308)	(3,418)	456)	38)	156)	672)	140)	271)	300)	271)	377)	476)	262)	947)	384)	269)	117)	216)	(8)	(1,144)	218)	374)	215)

A fundamental shift in the financial scale and operational profile is observed starting in the second quarter of 2022. Prior to this period, the entity maintained a relatively stable revenue trajectory with consistent quarterly growth, whereas the latter half of 2022 is characterized by a massive expansion in both top-line revenue and operational expenditures, alongside a transition from profitability to significant net losses.

Revenue Trends and Diversification: From 2017 through 2021, revenues exhibited a gradual upward trend, rising from approximately 1.6 billion USD per quarter to over 3.1 billion USD. This growth was primarily driven by steady increases in advertising and distribution streams. A structural transformation occurred in 2022, where total revenues spiked to approximately 9.8 billion USD per quarter. This surge is attributed to a substantial increase in distribution income and the emergence of a "Content" revenue stream, which was non-existent in previous years and contributed over 2.5 billion USD by the third quarter of 2022.
Gross Profitability and Cost of Sales: Gross profit remained resilient and generally grew in tandem with revenue until early 2022. However, the cost of revenues, excluding depreciation and amortization, experienced a dramatic escalation in the second quarter of 2022, jumping from 1.2 billion USD in the previous quarter to 6.6 billion USD. While absolute gross profit increased to 4.1 billion USD by September 30, 2022, the cost-to-revenue ratio shifted significantly, reflecting a more capital-intensive cost structure.
Operating Expense Analysis: Operating expenses underwent extreme volatility in 2022. Selling, general and administrative expenses, which typically fluctuated between 600 million and 1 billion USD, peaked at 3.5 billion USD in the second quarter of 2022. Simultaneously, depreciation and amortization costs surged from a historical average of 300 million to 500 million USD to over 2.2 billion USD per quarter in 2022. This indicates a massive increase in the asset base or a significant change in accounting valuations.
Operating Income and Net Loss Patterns: The entity maintained positive operating income for most of the observed period, with a notable exception in the fourth quarter of 2017 due to a 1.3 billion USD impairment of goodwill. A severe downturn is observed in 2022, with operating losses reaching 3.6 billion USD in the second quarter and 2.1 billion USD in the third quarter. These losses were heavily exacerbated by restructuring and other charges, which climbed to 1.0 billion and 1.5 billion USD in the same respective quarters.
Bottom-Line Performance: Net income remained generally positive and stable between 2018 and 2021. However, the combination of increased interest expenses, massive restructuring costs, and heightened depreciation led to profound net losses in 2022, totaling 3.4 billion USD in the second quarter and 2.3 billion USD in the third quarter. The tax benefit recorded in 2022 provided a partial offset to these losses but was insufficient to restore profitability.

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Warner Bros. Discovery Inc. (NASDAQ:WBD)

Income StatementQuarterly Data

Income Statement
Quarterly Data