Operating Profit Margin
since 2008
Calculation
Warner Bros. Discovery Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 16.50% | = | 100 | × | 2,012) | ÷ | 12,191) |
| Dec 31, 2020 | 23.57% | = | 100 | × | 2,515) | ÷ | 10,671) |
| Dec 31, 2019 | 27.00% | = | 100 | × | 3,009) | ÷ | 11,144) |
| Dec 31, 2018 | 18.33% | = | 100 | × | 1,934) | ÷ | 10,553) |
| Dec 31, 2017 | 10.37% | = | 100 | × | 713) | ÷ | 6,873) |
| Dec 31, 2016 | 31.68% | = | 100 | × | 2,058) | ÷ | 6,497) |
| Dec 31, 2015 | 31.04% | = | 100 | × | 1,985) | ÷ | 6,394) |
| Dec 31, 2014 | 32.90% | = | 100 | × | 2,061) | ÷ | 6,265) |
| Dec 31, 2013 | 36.10% | = | 100 | × | 1,998) | ÷ | 5,535) |
| Dec 31, 2012 | 41.34% | = | 100 | × | 1,855) | ÷ | 4,487) |
| Dec 31, 2011 | 42.48% | = | 100 | × | 1,799) | ÷ | 4,235) |
| Dec 31, 2010 | 36.05% | = | 100 | × | 1,360) | ÷ | 3,773) |
| Dec 31, 2009 | 35.13% | = | 100 | × | 1,235) | ÷ | 3,516) |
| Dec 31, 2008 | 30.70% | = | 100 | × | 1,057) | ÷ | 3,443) |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31).
1 US$ in millions
The operating performance from 2008 to 2021 is characterized by three distinct phases: an initial period of margin expansion, a significant contraction reaching a historical low, and a subsequent period of volatility amidst rising revenues.
- Margin Expansion Phase (2008–2011)
- Operating profit margins experienced a consistent upward trajectory, starting at 30.70% in 2008 and peaking at 42.48% in 2011. During this interval, operating income grew from US$ 1,057 million to US$ 1,799 million, indicating that operational efficiency improved faster than revenue growth.
- Margin Compression and Volatility (2012–2017)
- A gradual erosion of margins occurred between 2012 and 2016, with the ratio declining from 41.34% to 31.68%. This downward trend culminated in a sharp contraction in 2017, where the operating profit margin dropped to a period low of 10.37%. This decline was driven by a substantial decrease in operating income to US$ 713 million, despite revenues continuing to rise to US$ 6,873 million.
- Revenue Growth and Recent Margin Trends (2018–2021)
- Following the 2017 trough, a recovery occurred with margins rising to 27.00% by 2019, supported by a significant surge in revenues that exceeded US$ 10 billion. However, this recovery proved unsustainable; margins declined to 23.57% in 2020 and further to 16.50% in 2021. Although revenues reached a peak of US$ 12,191 million in 2021, operating income fell to US$ 2,012 million, demonstrating a clear divergence between top-line growth and operational profitability.
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Comparison to Competitors
Warner Bros. Discovery Inc., operating profit margin, long-term trends, comparison to competitors
| Warner Bros. Discovery Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 16.50% | 30.55% | 17.89% | 39.65% | 20.86% |
| Dec 31, 2020 | 23.57% | 22.59% | 16.89% | 38.01% | 18.34% |
| Dec 31, 2019 | 27.00% | 21.15% | 19.39% | 33.93% | 12.92% |
| Dec 31, 2018 | 18.33% | 19.24% | 20.11% | 44.62% | 10.16% |
| Dec 31, 2017 | 10.37% | 23.59% | 21.28% | 49.70% | 7.17% |
| Dec 31, 2016 | 31.68% | 26.27% | 20.97% | 44.96% | 4.30% |
| Dec 31, 2015 | 31.04% | 25.82% | 21.47% | 34.72% | 4.51% |
| Dec 31, 2014 | 32.90% | 24.99% | 21.67% | 40.06% | 7.31% |
| Dec 31, 2013 | 36.10% | 23.34% | 20.98% | 35.62% | 5.22% |
| Dec 31, 2012 | 41.34% | 25.43% | 19.46% | 10.57% | 1.39% |
| Dec 31, 2011 | 42.48% | 30.98% | 19.20% | — | 11.74% |
| Dec 31, 2010 | 36.05% | 35.40% | 21.03% | — | 13.12% |
| Dec 31, 2009 | 35.13% | 35.15% | 20.18% | — | 11.49% |
| Dec 31, 2008 | 30.70% | 30.43% | 19.65% | — | 8.90% |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31).