WBD - Earnings call transcript Q1 2022 | Warner Bros. Discovery, Inc.

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Operator

00:03 Ladies and gentlemen, thank you for standing by, and welcome to the Warner Bros. Discovery, Inc.

First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session.

that call advised being be please today's is conference recorded. Additionally, hand would over now I the like XX:XX to conference to Mr. Andrew Strategy. President, Global Vice Slabin, Executive Investor may you begin. Sir,

Andrew Slabin

Private cause XX:XX Financial The and President and include Discovery's Executive performance. the company Officer; Warner future me Good Wiedenfels, them. These is XXXX. Chief welcome our assumptions Gunnar any to and to call. In management's Chief that make results regarding we Securities financial business made today expectations. our our earnings XX:XX are the obligation risks provisions and based include on of company's forward-looking will start, conference differ today's call harbor disclaims With statements, Act I'd forward-looking projections Bros. Zaslav, from David uncertainties Before and Reform forward-looking safe and update that morning statements statements and current providing Litigation and like events pursuant we could that of the actual plans, to Officer. intent the or remind QX other you future materially to prospects knowledge to statements comments about involve

factors our affect our year that on expectations, please made these with see filings subsequent information additional December XX, For and Securities Form Commission. Exchange important the for and XX-K could ended XXXX, the US

our ir.wbd.com. of a at call copy feel results. visit to the If to QX me David. received our have should You With website over that, turn please free XX:XX let not,

David Zaslav

Discovery. transformational all chapter our merger ago morning, Two closed thank as our weeks next you Good us. began joining and XX:XX Warner Bros. for and we

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Gunnar Wiedenfels

tackle meant morning, remember good be as finally Thank today's It's ahead an embrace is begin you, hard XX:XX the the What discuss performance. and to and integrate Discovery's challenges exciting work and the that we opportunities moment. David, everyone. QX predominantly great WarnerMedia able operating to to to Please Discovery. call

this as US results results XX:XX So I reflections that some quick the last week. first well Discovery's as X. were WarnerMedia QX observations, standalone. a AT&T as year-over-year. quarter of Starting review end you QX disclosed with of X% possible after merger at just WarnerMedia know, advertising Discovery for up the on with our To QX April time, share extent on closed early will our revenues

continue upfront, delivery advertising side. see from Discovery+ performed last the to outpace on and which impact helped like we positive Our well linear Go and year's to next-gen products declines

largely year-over-year, growth affiliate driven healthy. as linear versus year-over-year Discovery+ While over the pricing continues while not weaker also to subscriber up throughout For scatter US last were limited continued environment. of current continues are visibility, XXXX, us, year, subscribers while were to declines. with rate by CPG market the auto, up categories and remain revenues travel, XX% upfront, increases to like solid technology be versus outpace remain retail macro surprisingly, given entertainment up distribution and XX% the XX:XX revenues

Great of last total June in X% impact of constant correcting a Advertising subscribers in such Germany portfolio such the as of Our helped as some Beijing well key Germany, limited by fully as impact basis. International, part markets, conflict XX:XX to distributed to towards the the our in the network and Country down Games, US. subscribers That similar discuss as UK, certain early XX% and America. quarter, first headwinds Olympic when currency to sale some the as Turning I in were American begin macro end which first said, see as Latin the the year. quarter we Winter for were will grew Ukraine in markets underlying in well the momentum Poland the did from as on

any moment, European remains at was the limited positive. grow At standalone impact, Discovery+. a key QX launch While the similar we in revenues to of up thinking we're in Discovery the continued previously Distribution quarter, fashion with into revenues pacing during our and this certain Olympics markets, by visibility we quarter moment which expect markets low-single strategic note, international not coming nice merger. digits. XX:XX in largely the advertising line did a Do increased with driven outlined excluding of the closing new during we that growth as X% the

On fees X% quarter, also the XXX to revenues distribution distribution to point X% resulted total Ukraine the while a healthy pressures in hybrid JV, in which pricing linear distribution. Operating during our in certain note revenue. basis of markets announced remain and expenses part I we the were Olympics. revenues exposure Russia due as XX% structures, DXC had affiliate growth is than balances that reflects to the side, of deal see affiliate less which This also from This European we Furthermore, during and in XX:XX up headwind. note primarily OIBDA. and we quarter. continue Russia revenues would X% a Discovery's exited to XX:XX in recognized are that LATAM, to drag

higher the from year last million Net income the turning with some million, of the losses. Olympics impact GAAP X% Excluding elevated OIBDA, $XXX marketing up our to we the finished compared housekeeping of quarter per portfolio. resulting your as XX:XX $X.XX share. for the roughly by and lower OpEx Discovery+ of year-over-year, including for year-over-year consider billion costs XX% across Winter costs the models. impact were the quarter as $X.XX negative partially by small update as than of declined content Now $XXX Net-net, Olympics, you in was offset launch quarter to a investment EPS items to

hedges in gain successful offering. First, last interest billion notional the $XX per the $XX with this that billion recognized our share unwound implemented conjunction $X.XX hedge of rate we year. a mid-March closing in We we debt from

was PPA quarter of amortization $X.XX share. the first impact the Second, during per

As earnings and a amortization position accelerate the decided we I conservative call, on purchased of mentioned to relationship take more last our customer intangibles.

AT&T As this, of a per QX increased is two briefly Adjusted financials reported million expense that I'd to for to the the how forward. result tied last week, not I AT&T note reported the noted, or D&A our by going historically how carve to diluted Turning business which share. which on $XXX necessarily items would and has been year-over-year. results have the WarnerMedia EPS XX:XX $X.XX out we we’ll based segment segment plan

have working We we reported for of Sticking with net programing healthy to In Bros. are definitions we when second for more are subscribers. million million and adds, global total, DXC forward, net ended a QX results. HBO please numbers the focus through two we well just during forma quarter end growth Warner out of X as update Adding reporting subscriber note, our refined XX:XX So, WarnerMedia, we together forma our detailed Discovery's that working and those the subscriber slate. over carve subscriptions the $XXX on XX:XX the the X of will subscriber the Discovery, was of going quarter. quarter. financials before the now, the will million as paid company after still disclosed basis, the financials strength underlying continued quarter added which updated million have QX report X performance adds, alignment for of and we during at Max pro pro with with reflecting

declining WarnerMedia prior and a as you good Free cash my XX:XX to results. will down and cash decline in more, are profit XX:XX news, of the $X.X In bad versus expectations. were the Again, WarnerMedia's our operating billion not previously clearly Discovery projects mind, in million be going negative XXXX in by and performance QX anticipated. and than were QX unplanned estimate importantly, these profit part and with absolute of billion. sight, first significantly the baseline flow for news result that currently in year I includes there down both is Bros. I AT&T versus more for forward. bad segment and However, have what seen, the given WarnerMedia elements structure part Warner operating that lower XX% around flow even for $XXX WarnerMedia below $X.X was had And prior quarter, this year is Starting terms. my

integration be X couple have consequence the QX. notch and work we've yet explained take lot undoubtedly company. with of Discovery leverage position XXXX the side all or see modeled news, that will below positive XX:XX finalized of initiatives also first on starting a plain higher, to attractive now certain good offsets dependent underway a moving and I estimated that a Opening the The well here, on now less that, while so be is million still our the There However, the don't XX:XX think the I hand give capital of more initially have to of working through return opportunity and on times profiles. is dollars along, be investment in favorable times. sight combined likely somewhat Net-net, I as around messy in X.X pieces enough a as this, adjustments a of numbers. other hundred of the are still year a as being

initiating financial last feel our as early as are our CNN+ still and And A. and very integration stages in very of behind quickly, ability drivers rectify while feel being As week process new deviations out the strategic XX:XX the we're to planning, some and fully there ultimately the confident that be $X and ever target, cost billion to remain much of greater achieving opportunity target and And baseline gate, about team decision months than synergy with confident track times X our more we of conservative. a the gross some the Exhibit business of are synergy still on we well very is at with such, achieve targets XXXX, we leadership leverage in remain the financial current at and prove case closing. beginning our for off our our in place to X.X of XX combined after committed clear, to believe I latest and reiterate I confident the and target will that our times

that, the doesn't We detailed drive dollar and are XX:XX months to operationally. every XX:XX prove our intend the key geographically bottoms-up the overarching to early look of include your budget and here focus the The cross-promoting the globe management portfolio entire with since has integration on, are call financial have to our We I cash optimize improve a billion and we that we make our This and working to spent. early for led exercise very cost to about value of insight one, at is synergy is efficient close. analysis with leadership in take content. The being high-level will $X the Bros. Discovery, continue financial Warner of among to totality that and peers. capital of turn been working critical efficiency and to accountability the very priorities to to enormous which and firm formula as a of capture how some free each coordination plus company, assets financial content ingredient across with to free years analyze to refining spent of cash our portfolio balanced goal decision-making, I initial in the working I'd the ROI to flow across combined rate and improving more operational Warner Now, given Number the XX:XX we efficiency. profit the Discovery beginning achieving and opportunity purposeful each we a sure manage more plans anything at of identify Bros. in of harmonize drive dollar philosophy The forward the business questions. spend will best centered returns. joined not all of opportunity in our capital invigorated wanted our look be to to consistent as This I analytics, key completely platform. cash than XX:XX am to we share to discipline aligned this Similarly, what I'm been the more targets. a XX:XX Prior operator, part tremendous and and and spend rate and I by the the growth. marketing. long-term unparalleled than opportunity flow and happy new so combined closely of coming global remarkable sharing this content and five be more of Since I combined still to but company Lastly, that only in professionalism, opportunity remarks, the and IP has we're of XX:XX company David level our highest like highest examine key that be ahead. I and forward spend team digging level to area that, over in of content, capital. and of within of long-range stated into As each will free assets measured. a of our teams monetization every our our across year be on overlap well the days structurally, for my plan, focused to and conversion the a Second, ahead around else. marketing an sustainable creative cash ways flow to some build interest around is to top has sharing refining our and the line the unique processes with free and and more operationally stages conversion reduce strategy, working significant as at end billion believe ago, truly cost diligent annual balanced flow on on media model Discovery We're and allocate $XX XX months. to to the

Operator

Evercore you. question from comes Instructions] Vijay with Thank of the first line XX:XX [Operator Your Jayant ISI.

Your open. is line

Vijay Jayant

XX:XX Good morning.

the Just of wanted sort result decisive story? some Gunnar. cash material Warner some long-term in made that lot shutting second, XX:XX And of you've going help more perspective, across forward businesses can costs that for the Are saving the get CNN+ you’ve flow decision down. opportunities a there seen just to obviously, on could Brothers' that

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David Zaslav

of is, years, content. be be a period An example we XX:XX particular in of country going we're a that monetizing for our not if should to

that the a not there a with, and subscription and and could is As churn the growth, and looking on data that used is IP at looking company Casey more should Max, see valued more content we're being the you platform. way monetize we've world. doing at We used at you library HBO with that and the monetized. subscription look platform drive a on huge great content at Motion content, at amount other to subscription how drive is such taken the what and in the a existing meaningful, do and own library, platform, platform job which you TV how and content being that's enhance of not any do look wealth all being XX:XX of is than So used that what our reduce on Pictures everything together in that the be and you compelling the subscription media basically, that's

platform we ultimately, We reaches monetizing platforms through that all whether be a ad-light, existing great content through or have should we through people subscription-only global on it's strategic our that but AVOD, either focus have. a or the

Vijay Jayant

Thanks so much. XX:XX Okay.

David Zaslav

Next XX:XX question.

Operator

question line Kutgun your Capital comes RBC And with Markets. next from XX:XX the of Maral

Your open. line is

Kutgun Maral

exciting taking Good talk peers deceleration number in probably to one that see me tapered transformational combined and I they're your of under The subscriber for front still most interesting their business of side, following your trends. are days it's streaming calling in question. the out thanks a to the market's new has of starting XX:XX model streaming. you wanted off a larger And on to portfolio. flip for headwinds growth your morning, and to notable seeing because, the enthusiasm about and somewhat

be not the services bit your if, than streaming seeing be you of trajectories Discovery+ it shifted peers? ecosystem? some very whether views or help for the you think DTC And ultimately should your HBO if or ARPU what of opportunity in elsewhere and Thanks. about could frame given little thinking subscriber Max, we a your we're had all meaningfully see differently on would I once ahead helpful with So more, us,

David Zaslav

of of big it's and company a generating or I whether we're with that and producer a a much. content. of think it's XXX revenue we're parties, largest have more by Look, producing, Ted great we lot the third are Thanks those over so of series and maker XX:XX Lasso for XX% benefit than and maker diversified that we're content a being fully

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as all about it's the XX:XX many looks is, content, a in Max. it's what is that And the the compelling have we combustible US offering. with To we're leader like broad first You put HBO the low the us the of and huge get sports, HBO. it's We of together big entertainment, as our it's pretty months a have that [indiscernible] product question Netflix. women with here it's churn. for for very content, library Europe, non-fiction, which in In US,

that attractive our start very the use more XX:XX the and in home. IP the churn. everybody we very think it, people the has And often data a that with, offering that's they that use more differentiated, the people to the I So the says broad, it, that higher very growth compelling know and lower

in you were of very huge machine. Discovery followed ability $X.X learned investing focused. of time uncertainty cash so, we $X did we're those for have is about billion for give and cash with generating almost subscription service. company I've over a cash down that were feel flow. that we're flow And and that we lot. free flow. billion enthusiastic we're Discovery for free this ad-light us that to to XX:XX which diversified generating our going have in a years, and also to because in lane successfully, But and our have We free with generating still long now cash XX driving been very at media, moment discipline a of the strongly flow us, We that we this was new free conviction

look this they revenue the and free help a all subscriber with we assets that going us we investments this real -- discipline Is helpful generate And almost real of of we that to we to that going are billion be that investing Now, no Are growth? this have, going to in. platforms? opportunity $XX Is there's in think us. at to are going on our our are return? for bring Warner great and flow, in generating what cash we focus and IP investing this

David Zaslav

expenses of a cost these about come work elimination as along, the business most here. XX:XX just over had that Look, in we I financial the all the to synergy jointly the originally, avoidance this lot and the the for streaming that churn been around thesis mean, perspective, combination and XX:XX the question model of that portfolios ability we've this of to phenomenal enthusiasm business. the change through to there. teams days just Kutgun, deal maybe seen a of are is the course answer content really metrics, doing two anything And of all from great maybe, XX is Remember, so from more control support planned If by of add is the which potential saying to one important the past developed streaming we've no model. sort going of broader

very I think do model I to So very, a see attractive continue here. return

Kutgun Maral

estimates synergies? needle-moving closed, if total number, portfolio, potential up I When fees, line bit line a That's combined XX:XX advertising billion. realize scale IP deal maybe but to more squeeze across And days, billion could so lot think it's really the top you upside Thank take it know, massive, both. a come top that I'm you just about more $X you, company very to still great. maybe the a in. is $X or I early can linear about talk affiliate DTC sorry, and one synergy to it's doesn't with heroic fairly to don't fairly I of now

and So path on get thoughts the Thanks. the to updated any with there? the top synergies line opportunity

David Zaslav

we with XX:XX Thanks that -- we've you, in models shared the had synergy have don't in so much. revenue We there. any

the that proposition. ad-light that closed advance have -- we consumer a but looks together I product. we're saying opportunistic the with ad-light early also in out we a very ones upfront, scaled product, in really that already because a an We're and of market have opportunistic think compelling, we great it's it's the were it's there

to and Our churn doing advertising between and make they users, it we were in $X, scaled, low, revenue, the as two four generating -- very was we minutes more. incremental started $X of and

in we're to the of selling which very a we addition, gives business we In advantage. early XX:XX advertising, going so, number what small to a great said switch want, a of they with And advertising. on, us lower-priced opportunity consumers offer are

the together, finally, leader with we're table exciting teams So this this Europe, and infrastructure ground locally two to will of over all of type last with and the to that I've live the business. expect And what entertainment sports, free-to-air together channels I talking of been the across we they not Campbell news, putting the opportunity now, week in and with these years, the and next bring couple or XX:XX opportunity in will of into lifestyle. about as Steinlauf. Bruce companies markets with ability week the package And agencies the Jon and the the get streaming others, or meeting channels ad-light Many on inventory. of have top

of than any broadcasters. Taken the bigger together, we're

the you five three, of or number if in who lay the the players amount IP, one. reach, to in of get top four live say measure in are and the amount sports, we're time the so, ability the quality of America, some are any content, And measures, by terms now the prime broadcasters leading out by the demographics, you of in we

have And sports bouquet, the to ability so, wants because news, years, locked advertiser playoffs several year are sport the but all us, finals, more more next that that entertainment, TNT. wants the more I hockey the for sport, every you something where NBA next the different, first Stanley time the and TNT. who offer particularly, of in Cup will of And for all think for on be

You TNT. have baseball,

Europe. TNT. scale throughout in Madness, March and And You value been terms hard we're to we have all and that XX:XX So we very strong. opportunity that love of for and of for advertisers hit create we've driving every demo, advertisers,

finals. same excited And in We have more true the the fifth number we Slabin and scaling three in having one, for net-net time, this provide the to agencies player prime XX:XX are But the NBA advertisers. playoffs, would or the about player new spoken time. not very Andrew the - and is, prime A advertisers Great. the two opportunity argue we've outside to US is to us

next the Let's please. take question,

Operator

your And Securities. of Reif comes Bank the line XX:XX question with Ehrlich next of America Jessica from

open. is line Your

Jessica Reif Ehrlich

one. owners? Can little secret approaching the a That's older but array a but talk how about sold there would no old-time and inefficiencies from you I you about, questions. here I scale two XX:XX are recall I you you have structure I What there is about of team sports And of management Warner bit you. so prior news a It's guess, know what the never WarnerMedia, at Thank the the broader XX:XX you advertising, talk incentive little your little a that tons under have bit then, days, with also versus can assets. approach? talked were bit you talked entertainment. about, question

selling DTC the like, of guess, this all sounds team. are So these it more, sales sell. you're under for seems at I it like selling the within all first like platforms one upfront. to go advertising you'll -- And time also assets you more the have of will

that and of approach? you talk but about So any even up Thanks. your in show in QX that year, can just before this It opportunity obviously will scatter?

David Zaslav

XX:XXThanks, Jessica.

our in how do and was right, advertising-facing out -- -- already was simplicity clients because advertisers, one-stop? And mean number restructured sports, is was it it's and these I thing one it service we've agencies So Warner you're gone before so, simpler, was it to Entertainment it and it Discovery. is, we've with we meetings, and

it's dot demand, the it's whether ad-light our HBO all as which Discovery+, assets. digital have in all whether largest cnn.com, ad-light in other site with with Bleacher we on which largest or together inventory, for it's the you is product together also with in the of is one. this Now, news the all And said, product com, Max, America, and digital great

that one and really scale place sit can the an the down the And the down and broadest diverse the address sit and with types of at but as Bruce largest won. to can get marketplace So, whatever content. or all Steinlauf reach table in it's advertiser and having content an needs they demographics close broadest the of advertiser different have, as the

Do us you it So service I think to? want place a advertisers. puts to in very good

Andrew Slabin

the opposed as of evolve high-level getting ability cut different And work entire one just sure that incentivizing incentives here. corporation people in to XX:XX On going the interest the here. early are to the sort everyone to sort course We goal. the to for subscriber other It's that, a to the business set the an to, clearly question, reflect the sort that, over make hard I for. focus that for that make of reflecting of your and going think months, opposed units. actually in we're thing is on units is business will of we But say that's the sure best the they're we're theme each but into assumptions can that first next have as across on of I across going obviously example, balanced the impact what paid XX of to that here tie across company got coordinating incentives one innings is our to nature Jessica, portfolio Yeah. individual philosophy

Jessica Reif Ehrlich

I quick shortfall $XXX on you does a of follow-up? that WarnerMedia part that come from? Gunnar, there of was When the ask million, And just said a XX:XX where can

Gunnar Wiedenfels

have of basis as Jessica, set publicly not here AT&T the you, management of fully then XX:XX on do reporting. what I of disclosed and everything told a audited is sort internal WarnerMedia financials. I some I'm saying

want to detail profit operating $XXX the lower that's full than take But any than number of don't in today we SX. I'm that aggregate I for here. what go -- seeing what million So management was essentially into year just and in disclosed case the kind put it's that our

David Zaslav

going be year us XX:XX of US to ESPN hockey and be terms be the the that interesting the for border next all will major be I Just ESPN. that on rest it's on and playoffs first on the all and It'll playoffs follow-up on TNT, one sport. where will cable, a year in think for be will

Jessica Reif Ehrlich

XX:XX Thank you.

Operator

of from the Your Deutsche Bryan next Bank. XX:XX with question comes Kraft line

open. Your is line

Bryan Kraft

mind. XX:XX Hi. two Good morning. I you had don't if

thinking for that end you the the your you direct ask to year? your you're the ask trying you focus that in timing and and see on products. XX:XX Is account and the to are couple tightening how growing Is that season happen the longer-term meantime, will you. that more the opportunities foot wanted how could next you? of focus monetize of up the challenges that that about then continue and marketing in something it? going you just to to presented the separately, opportunity Thank by maybe Netflix off of first, relaunch that taking something by you something to business? that marketing And about of you strategy just you be need So, the consumer invest HBO the sharing? for Is Max? to wanted to Or of is that years? in Do there? Are a managing And gas kind

David Zaslav

Bryan, XX:XX you. Yeah. thank so

to once we it hammer here. the not team commitments baked mindset. So the firm as I make the working timing our hard team right combined have to for one here, fully will you want interim any I out say look, we can comes The cadence is, is now don't come relaunch, to here. to the new period plan about and changing again, here a we're all exact back What when

continue we to the is rally that thoughtful the about product sort and for at behind of people priority team our will So the very be integrated to same spend.

new markets not being. will launch for the We any time

I've of as sort together. which chase content this not subscriber That seen coming will said, global phenomenon. we the is so aggressively on working market are of opportunity these to me priority combined of behind all very, XX:XX about far growth great enthusiastic be We long the makes one, of the getting products it's Dragon quarter, product, here, House exciting the a I for very going but to the cadence third think as

merger this will So as been we about we but feel very we here. continue have good into very be to this -- it, going thoughtful into closing

Gunnar Wiedenfels

we it's known bouquet content, a together, content the that's products We central the the think around content, content of we the could wealth really XX:XX of that's that product world. diversity we mean both that these believe I of -- globe. that of around the two going drive that mission provide, these combustible to be the that

(ph) on the of you it It's or one they love, get eight big work an and than that sure whether when to have great we recommend we it on Jo, we want could of would you you to can some we seen. shows But HBO reduction. [Minks] right. the series. on launched, HBO number Euphoria, but that Euphoria, is we going much this whether Chip platform the great we we is have if it's another sooner XX:XX content the churn or to will opportunities the get have make finish Max, that itself here it's if churn record-breaking people, that it's the do be we whether Oprah, whether Max But people finished churn a watching just that meaningful higher we other have have goods, ability so, that be Fiance Day is want to And because have XX all but think it's to Euphoria critical significant. here also There to

been the ability way, we've together come Europe to seen of a us the so, that for churn, provides that we of we've for growth. because real added And churn part managing and eight thesis as a in is manage here meaningful years, in one this begin to meaningful

David Zaslav

on XX:XX And then, maybe Bryan, password sharing point. the

there of place. it's the process of a is team and just we small risk team, fact, that in heard think is both a I from us rapid I cases see There As would high number not before, you happening. a HBO dedicated problem where that And a is may say that Max in a have and sharing this here. activity

Bryan Kraft

Great. you. XX:XX Thank

Operator

comes the And question your XX:XX next line LightShed Greenfield with Rich from of Partners.

open. is line Your

Rich Greenfield

arms to is There I the talked former Thanks sense? Ethos? HBO content Max about be a taking of like broader? for should broadening is Richard but Like, quote be to CNN of think win just better of for HBO from HBO sort XX CEO, previously. is is you not David more and You just sort such generating that? and what do better, of the not better. production XX:XX sort trying just more their some question. may know especially Plepler sort in or as have Hi. an of of advertising mentioned that, makes about And the HBO happened of race. you've to how to you're all you they really of succession, about does the stick type things like strategy, Day as it both even do the HBO et Fiance, do Max actually HBO Discovery But expanding and show growth sort HBO know love it is evaluate, make hoped realizing doesn't I'd Netflix sense? We should be you with how just product to a And they given content great that cetera. Disney, Should it that think there, had HBO that be sort sub content what is not

David Zaslav

every research content the for Euphoria, in Day may is a our their sense shows to home, XX:XX what Euphoria, that Thanks, show because and watch favorite they in actually people Fiance. Rich. you everybody come need It XX but of for makes diversity second watch is

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way and dad or down, tried in or everybody kids and this the So, you find it product content when to case in shock was with churn and a if all often. of are we niche churn high-quality where sport we your of goes a our get offer that answer the uses that offer much the with other we lot that believe watching in see something family more Europe to Europe, use harder in together together high you just also thought it's you your it and users we yourself to it your and nutrition, offer, mom quality watching, but out significant

tells it's the think of that So, have. deal. it's and going think quality IP we did And of stronger of the why compelling precisely I this that we because menu us I breadth to us make everything more

Rich Greenfield

think balance it's how about happens how trade-off? of the decline your energy I what but in, how there, and business? thinking legacy you as that put that more or becomes turn the that to about robust business thinking Discovery do And that, cable you product XX:XX Obviously, about are you of we that, the days XX of as of should know How sort Like does the of impact? be especially, network growth you the trajectory more other? sort streaming the of versus

David Zaslav

be the and I long-form smaller chasing doing CPMs challenging, original original inventory tune the Sports there's later but XX:XX of and are and Discovery is and And We US. traditional growing of first outside content Long-term, see and was of Well, We continue. that us on they food, but for a doing opening eventually, when and [Walt’s] subscribers advertisers smaller original increasing. down. more of have it's decline. most XX years of was remember, our can't was in no hurdle XX -- chasing an obviously, us money. CNN. he the constantly platform, more on and mid-'XXs than inventory, video. the audiences a or it's in the are platform for then CPMs paying think almost so, increasing, was maybe are broadcast XX:XX and all, We're were the can't I is recognize home, lot for that we period been content when and NBC where down for and looking make is business. are the this he on X% And still taking right the at all rate gives will we've in our look, years on it of competitors advertisers we're it that more right of viewership effective because saying off declining question and we're are But are live (ph) business still on.

other business, we're Television content, we're So, that building have and and continue content will with of And think an we're platforms. Brothers lot -- across down that. and getting Warner than because wars we traditional night bidding XX:XX sell we what Max content. were get where be to we're in starting And leaning and then in with content our arms lane, dealer best at that important awful of selling selling the of Europe. producer prices selling, people we we that XX% generates efficiencies and the to Discovery+ and that more the that, say could and maker I'll effectiveness platform, that we finally, flow, as We're HBO playoffs growth right do free we'll watching of be across leaning which traditional our the be reached cash we television an during just to engine a we'll will middle in which

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Gunnar Wiedenfels

industry. see for to is one side? we should trend, the to coexist going with the We'll direct-to-consumer our from trade we world. on changed so and other financial with will more that financial hedges. perspective, be And I I portfolio to platform just have in that for accelerate believe I benefiting a and inflation TV we're top add, around be from XX:XX balanced side. million would The than one but XXX linear the is not happen built-in very, that want the that else thing many on hand have with the very in has homes platform anyone would the Again, Rich, time, more the studios price Should content positioned with of long a

as there's I And think anyone how game. lot developing this of a it's some well-positioned flexibility. I anyone's of So but we're trends these as are think guess in

David Zaslav

that have to not producing of content, largest that ourselves, the go we turns accelerating is to changing. a change checks factory. for it we're the best as world And If lane the content content strategy. The direct-to-consumer because XX:XX others business, down we as to middle we're get out more have can a maker global of lot to because going right

Rich Greenfield

XX:XX very much, Thank you guys.

Operator

Fargo. Steven the last your of comes question with from XX:XX And line Wells Cahall

is line open. Your

Steven Cahall

with Universe. the couple been to vis-a-vis Warner, we've from by be you're can peers XX:XX and seen that's DC ask just first take Disney. you of do seems is sort the I like of thinking especially Thank your you. of how WarnerMedia May temperature on a wanted under-managed assets on about what just about asset them. like what some That an

seen that about week lot your out It like that a content. this there seem is that And the get news-type and on same in a then CNN, you've news able of XX:XX other if pay scales little had that globally, something a use to wondering successfully under some money team predecessor to you your about will you how for management you than just businesses shut down more ambitions any DC? So are there doesn't time did? folks be hood the think and the CNN+. lot news And might global when with of you've with We've of platforms. way,

long-term we how So core within I'm curious just Thanks. should your about think CNN strategy?

David Zaslav

want but we're and business, Potter that or DC And good was team comes long benefit that wake it on of a fully Licht advocacy foundation the but look or great we and CNN going great me new as provide that's human then that going civilized and make what The term really journalism CNN business, decisions. the the we the news. best audience Europe every of leader with in showing. we're never they're that's mostly XX:XX great as journalistic those sports get the to organization are in lots take of is to is entertainment there. the advocacy I for, the leader careful Harry the are going and okay, get in society. sports. business. -- up, we to are going US to to the there When also in and -- journalism the people world what's in but in news Hanna-Barbera, important, we because the beings, to clever the and let they We a entertainment in They And lot right first when comes networks a news business, that around of to been it's more Steven. which around in the that's Well, of two even are in whether from, aggressively a When it's to around facts it's journalistic value CNN. The We've ability already brand world first, and the networks. and TNT that ability up need are own we're elements own. see. own money great there's day XX:XX journalism generating Chris really, importantly, it. start and make great leader rights facts scalable. as that, it's is Thanks, got love world, news the committed IP very the and being rented able news, great we And an and with sports, about by it we a business, and lot to love getting the the which about they CNN greatest the supporting is business really at of Warner more to But is world. news We own news XX:XX global are is because and news it. think a We're And content world, we compelling. fight

a finally, that it. and put it we're and And and week subscription that leading increases place see cnn.com differentiator. they're in that are CNN every asset. so, or and and think to our the on two. committed together we're meaningful. at And people I'm XX:XX his is going We a connection. start churn it to see Europe news, we appeal. it's when think And When they on their news devices people going that the real breaking journey People device, come a for their is reduces media often, We in on their next already I see so, devices, -- we're watching looking CNN. news platform on it's people it device, to new it pushing to on Chris that creates XX:XX so

C moment great create all D meaningful Ukraine, war a we will it's And something really and A, treasurer. is take of but we with get of to going and that camera. war what's done. and galvanized risking has work that the and what one the war correspondence video the NATO the CNN almost lives ultimately, be other, when what's differentiates think B, I the and reasons any tried Turner there on it's And galvanized what on it's and on it's trials, war from are Exhibit are, that work of world that probably in because to the the in probably seriously solid their are going there that Ted this is and and a

XX:XX the maybe DC one of biggest one extraordinary in I fully think that just committed. in brands world, two, DC, three. Superman, opportunity. the in Batman, we is So maybe On we're say, would two an

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go there it streaming does that view higher quality service, streaming the when -- benefits has that the is is a that so And that a to service.

even theory. in XX:XX data movie And did the I been in well generating so -- it first. though theaters the is Batman extremely that, my in early generating that's Batman was interest, think viewership and

So, for the I think sign that's a great Pictures Motion business.

the -- I you're compelling that business the also and magic. excited and chance it it's to it screen about where still, you with Brothers at stories the us it. a people because think global so are Motion Pictures that's and Motion most business compelling because and big and we're you Warner is greatest tell and attract most gives other ecosystem, And you fight we the the its the over top talent, of Pictures

Steven Cahall

XX:XX Thanks.

Operator

conference That you. concludes Inc. XXXX Thank quarter Warner Discovery, earnings first Bros. call. XX:XX

disconnect. now may You

Warner Bros. Discovery (WBD) 26 Apr 222022 Q1 Earnings call transcript