Warner Bros Discovery reports Q2 net loss of $3.4 billion
Q2 total reported revenues declined 3% to $9.8 billion
Warner Bros Discovery has reported a Q2 net loss of $3.4 billion which includes $2 billion of amortisation of intangibles, $1 billion of restructuring and other charges, and $983 million of transaction and integration expenses.
Q2 total reported revenues declined 3% to $9.8 billion. Pro forma combined revenues decreased 1% ex-FX compared to the prior-year quarter. The total reported Adjusted EBITDA was $1.6 billion. Pro forma combined Adjusted EBITDA decreased 31% ex-FX compared to the prior-year quarter.
Cash provided by operating activities increased to $1 billion and reported free cash flow increased to $789 million. The company ended Q2 with $3.8 billion of cash on hand, gross debt of $53 billion, and net leverage of 5.0x.
Ended Q2 with 92.1 million global DTC subscribers, an increase of 1.7 million versus 90.4 million subscribers at the end of Q1, as adjusted for the Company's new DTC subscriber definition. The new definition resulted in the exclusion of 10 million legacy Discovery non-core subscribers and unactivated AT&T mobility subscribers from the Q1 subscriber count.
The company also re-extended its agreement with AT&T to continue to offer its internet and mobility customers access to HBO Max’s portfolio of original programming and series.
We've had a busy, productive four months since launching Warner Bros. Discovery, and have more conviction than ever in the massive opportunity ahead. We have the most powerful creative engine and a bouquet of owned content in the world, as highlighted by our industry-leading 193 Emmy nominations, and we intend to maximize the value of that content through a broad distribution model that includes theatrical, streaming, linear cable, free-to-air, gaming, consumer products, and experiences, and more, everywhere in the world. We’re confident we’re on the right path to meet our strategic goals and really excel, both creatively and financially, and couldn’t be more excited about the future of our company," Warner Bros Discovery President & CEO David Zaslav.
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