And it's the same principle with theatrical, perceived value of content increases when there's a great expectancy and excitement. So that storytelling IP. "We are looking for: single women and men between the ages of 23-35," the official Warner Bros casting call reads. "I was in the movie 'Grown Ups'. We've been hard at work since our last call and look forward to updating you on our progress. On the one hand, we have tremendous breadth with live news, live sports, entertainment, nonfiction, a tremendous share and reach. And as I've said before, net-net, that's not a segment where I would expect a sustained revenue growth. Well, one of the big advantages that we have, Brett, is that we have this diversity of content. It's just too early to really call a trend change here. And there's lots more to come including the highly anticipated Mortal Combat 12 and Suicide Squad - Kill The Justice League, games also set for release this year with ambitious launch projections. A few weeks ago, James and Peter rolled out Phase I of their highly anticipated multiyear plan for DC Studios across film, television and animation with 5 films and 5 television series already in the works, the new era for DC under a single creative vision is in full swing, and we are especially eager to thrill fans with new Superman and Batman movies in 2025. The scatter market overall is very slow, I would say, steady to maybe a little bit better than it was in the fourth quarter. I remain very optimistic about the range of potential outcomes in 2023 and beyond. Warner Bros. But in order to do that, we took less volume than we could have. So I think we're very well positioned. Moreover, the exit rate coming out of the fourth quarter lends confidence in continued very strong financial performance thus far in Q1 and into our soon-to-be relaunched D2C offering. Lord of the Rings is one of the most iconic storytelling franchises of all time and we're so excited. It gives a huge advantage with those tent poles. That's the power of curation. And then, Gunnar, you sound very bullish and confident on the D2C targets, the $1 billion of EBITDA in '25. You had 6% growth this quarter, a lot of that from advertising and content, but do you need revenue growth to accelerate in order to deliver that $1 billion? Discovery The move is part of CEO David Zaslav's self-imposed mandate to find $3 billion in synergies between the two companies. Warner Bros. is a global leader in all forms of entertainment, from movie and TV screens to mobile devices, store shelves and beyond. In today's increasingly dynamic and a crowded media environment, the best hand has great storytelling IP, brilliant creatives, a full slate of production and distribution capabilities, and broad global reach that stretches across premium, pay TV, free-to-air, theatrical, streaming, licensing and gaming, the entirety of the ecosystem, and that is exactly the hand that we have, and we intend to play it decisively and with a focus on free cash flow and an eye towards sustainable future growth. Among them, the integration and repositioning of our global finance organization through which we implemented a number of initiatives to drive efficiency and better support the company's long-term sustainable growth. Participants must have the right to work in the United States or Canada. If you have an ad-blocker enabled you may be blocked from proceeding. Sir, you may now begin. And while we are comping the Winter Olympic Games in Q1, which we expect will account for roughly 100 basis point headwind to our global advertising growth rate, we see underlying international trends modestly improving. It's about the sustainability and the longevity the free cash flow being delivered by that segment. The 50 Best Movies of 2022, According to 165 Critics from . Overall, 14% of . We brought our losses down considerably and are even more confident in the financial targets we laid out a few quarters ago. Discovery, Inc. (NASDAQ:WBD) Q4 2022 Earnings Conference Call February 23, 2023 4:30 PM ET, Andrew Slabin - Executive Vice President, Global Investor Strategy, David Zaslav - President and Chief Executive Officer, Gunnar Wiedenfels - Chief Financial Officer, Jean-Briac Perrette - Chief Executive Officer and President, Global Streaming and Interactive. More Earnings Resources from MarketBeat Earnings Tools: Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance No previous acting experience is necessary, but applicants need to be eligible to work in the UK (meaning they must be a UK, Irish or EU passport holder), and be available for filming between August and November 2017. And Brett, just to be clear, the Discovery content would still be available on the bigger relaunched combined product. But just as you think about the impact of DC sort of fully realizing the opportunity over the next 5-plus years, what could that mean to Warner Bros. Let me start with the second. ET Follow HBO Max Go to Site Follow HBO Go to Site Follow Warner Bros. Go to Site Follow HGTV Go to Site Follow Discovery Go to Site Follow discovery+ Go to Site Follow CNN Go to Site Follow TBS Go to Site Follow Food Network And so we're going to be -- Casey is the best example of that. David Zaslav Praises CNN Adding More GOP Voices; "Balance Strategy" Is "Important," Warner Bros Discovery Boss Says + Discussion: The Wrap, . We're spending time with him and Peter and he had a vision for DC that we are all in on and believe in. It's significantly better outside the U.S. right now, which is a surprise. It's not about getting it out for a certain date. Casting Australia (@warnerbroscastingau) We've contended with recent share shifts away from our portfolio during the NFL and College Football season and the World Cup. - David Spade, 'Nothing Personal' 2022. We've gone through a couple of the puts and takes here. That's not the point. That's the power of streaming. The Foxtel Group has today officially confirmed details of a major new content and platform agreement with Warner Bros. We're going to be releasing 12 films, 6 games. They want -- they want to have an opportunity for their content to be seen, to be talked about, and they want to feel respected. She's also restructured the team with development-focused doers, who are running this portfolio as one integrated portfolio. Looking for Pottermore? And we take that across film, TV and even to sell to third parties, because we have something, we have a treasury that no one else has. But the digital inventory, which really held up in the fourth quarter has also softened. And then on the cost side, all of the trends are pointing in the right direction. It reminds me of my time at NBC when Thursday Night was must-see TV. DC Comics. Discovery CEO David Zaslav attends NRDC's "Night Of Comedy" Honoring Anna Scott Carter at Casa Cipriani on September 20, 2022 in New York City. TM & WBEI. As always, we are not managing this company for short-term financial performance, but rather with the next 100 years of this vibrant creative organization in mind. We are more confident than ever that we have the right strategy to be successful and ultimately achieve our goal of being the greatest media and entertainment company in the world. The closing date for applications is Tuesday, 20 June 2017 at midnight GMT. But curation, creating content at a time when people can watch it, creating a community conversation. We haven't done a Superman movie in 10 years. We've accomplished a significant amount in 2022, and I'd like to take this opportunity to thank the entire finance team for their persistence and resolve in working through these very difficult but necessary first steps, which has resulted in greater command, control and precision across the enterprise and laid the foundation on which we are positioning the company. And most importantly, we saw improvement across key KPIs. Join the Fan Club and bring your traits with you. [Operator Instructions] I would now like to hand the call over to Mr. Andrew Slabin, Executive Vice President of Global Investor Strategy. Disclaimer: Audition free of cost for more information visit the respective official site. We want to tell the best stories, share them with the broadest audience possible, and we do that by working together as 1 team, 1 company. First for David, as part of the upcoming D2C relaunch, can you just talk a little bit about how you plan to balance protecting the HBO brand while at the same time, leaning on the HBO premium content to help drive the new service going forward? John Oliver poked at HBO's parent company, Warner Bros. Yes. Warner Bros. We can put you on HBO on a Sunday or Monday night, where it's must see streaming TV or we could have to we've launched your movie. No, I was just going to say that as David has said before, I think the industry obviously was at a scale at any cost. And we've lapped that now, and we're seeing some growth now. The poor actors and directors of the . Revenue decreased 6% as global advertising revenues declined 14% and distribution revenues decreased 2%. Open casting calls are something of a tradition in the Wizarding World. And Ben, on the D2C question, let me start with the revenue side of it. For us, 2023 is a year of building. I believe Warner Bros. TV is the greatest quality maker of content in the world. Social media explodes and people are calling their family and friends to talk about what they saw. Reportedly Cancels 'Wonder Woman 3' Warner Bros. Warner Bros. Q4 revenue growth of 6% against the 12% decrease in combined operating expenses led to a significantly reduced EBITDA loss of roughly $200 million, a $500-plus million improvement year-over-year, notwithstanding a largely content-driven 6% increase in cost of revenue. August 4, 2022 04:30 PM ET. Warner Bros. I mean, pot levels in the industry, I think, were down 14% in the quarter. I'll talk more about that in a minute. And to that point, I have no doubt that we have years and years of that coming our way. HBO and HBO Max Hit with 70 Layoffs at Warner Bros. 4 talking about this. Delivering the latest news and official products from the Wizarding World and our partners. We have storytelling and games with Hogwarts, which is really off to a tremendous start for us. Discovery, ensuring it will remain as the exclusive Australian home of HBO, Max Originals, Warner Bros. and Discovery programming. In 2022, Warner Bros. will release Elvis, a biopic about the king of rock and roll himself. We have command and control of each of the businesses. Discovery is a storytelling company and we are very fortunate to have a huge share of the most beloved and globally recognized storytelling IP in the world, including Harry Potter, Game of Thrones, Superman, Batman, Lord of the Rings, and we intend to take full advantage of these one-of-a-kind franchises across our various platforms. You may now disconnect. Currency was an approximate $100 million headwind to EBITDA for the quarter and near $200 million headwind for the full year. These outcomes will reflect an incremental $2 billion of synergy and transformation efficiency capture, while additional puts and takes to consider include positive revenue inflection in D2C, the broader release slate at Warner Bros. Pictures and Games, balanced by cyclical advertising headwinds. On the advertising side, it's kind of a complex answer. Distribution revenues on the whole were impacted primarily by subscriber declines in the U.S. and lower affiliate rates in certain European countries, while larger contractual rate increases in the U.S. and premium sports packages in Latin America helped to offset part of this impact. So a lot to be looking forward to. And so we're feeling more and more confident about that. In Harry Potter and the Deathly Hallows, readers learned that Albus and Gellert were once friends, before becoming arch-rivals. Don't forget the 12+ hour blocks of five year old movies every weekend. The decisions we've made and the strategies we've set in motion 10 months ago have created a solid foundation and we're starting to see strong momentum. And so we are a storytelling company. Everybody has a strategic focus on improving free cash flow, market share for each of the businesses. So again, as I said, a similar picture with more diversity. Moreover, we're analyzing our pricing strategy in a number of key international markets, particularly in LatAm, where we believe our service has significant pricing upside. We will always be a little lower maybe than sort of a pure-play D2C product just because of the HBO linear trends that are baked into our revenue number. Discovery, for canceling "Batgirl . More on this from Gunnar in a minute, but I'm pleased with the trend line we see in Q1, particularly as we are managing towards close to breakeven segment EBITDA in the quarter. And we continue to track above our internal plans. The search for Nick took Warner Bros. much longer than expected, though, and eventually Golding was ready to sign on. Interestingly, the actor cast as the titular character, Austin Butler, isn't the most well known, and audiences will probably know him best as the Manson family member Tex Watson in Once Upon A Time In Hollywood . Thank you for attending today's presentation. Thank you, David. Discovery and sort of the earnings power of the organization? Note that merger and integration-related cash costs totaled nearly $150 million in Q4 and nearly $800 million for the year, in addition to a nearly $350 million headwind from securitization and factoring since the closing of the deal in early April. In recent weeks, we signed new deals with a number of the most prolific and celebrated creatives in the industry, including Greg Berlanti, Baz Luhrmann, M. Night Shyamalan, Akiva Goldsman and Zach Cregger with more to come. In addition to all of our entertainment and nonfiction, we do have all of our news and sports. I think the focus right now is obviously continuing to on the expanded entertainment offering, and we think the complementary of the HBO Max and Discovery+ entertainment offering is significant and will be a major step forward for consumers, who are looking for simplified number of choices, more breadth of options in terms of content all in 1 place and for good value. Games & Home entertainment faced difficult year-over-year comps as well due to last year's COVID-induced tailwind for library content. filming in Atlanta, GA. COVID TEST: TUESDAY JANUARY 10, 2023 FILM (1 DAY BOOKING) - WEDNESDAY JANUARY 11, 2023 RATE: $175/12 (DAILY) + $25 COVID For those that are happy paying $5 or $7 and having home, food, Discovery and own type content. And so I think of the investments that you make in live sports content on Turner, live content on CNN, are those types of things definitely are or they structurally not able to be put on the service? I'm confident that we will get there, particularly with some of the operational and content-driven initiatives implemented by Kathleen Finch and her team. This company every year give up the chance for new talents. Reiterating my earlier point, I'm very pleased with where we ended the year and encouraged with our ability to balance choppy macro tides with success in repositioning the company for future growth. Is there -- what are you considering? Appreciate all the information you just shared. Discovery advantage. And so you put the Discovery+ and HBO Max proposition together at a great value, and we think we deliver something that ultimately has something for everybody in the household, which will help us on scale and help us on churn, which are the two major ingredients we're focused on as well as obviously engagement.