The casting of a young Leta would suggest that her character might have a bigger role in the sequel. I can't wait for The Flash to hit the theaters in June. August 4, 2022 04:30 PM ET. The reality is, in today's environment, I think it would be -- you wouldn't want us to say we have a static a 100% defined windowing strategy. An unrepentant Zaslav turned up on Thursday to bask in the afterglow of positive quarterly financials: $6 billion in debt repaid since the merger, a combined 1.7 million new subscribers to HBO Max . August 15, 2022 10:20am. We have command and control of each of the businesses. Participants must be fully vaccinated for COVID-19 and show proof of vaccination. Presentation. Based on the traction we are seeing across the broad spectrum of operational and financial KPIs, we expect segment EBITDA to be more or less breakeven in Q1, which implies another $500 million improvement year-over-year, roughly in line with the improvement seen in Q4. We expect 2023 pro forma adjusted EBITDA to be in the low to mid $11 billion range, representing growth of low to mid-20%, against pro forma adjusted EBITDA of $9.2 billion in 2022. So I think that's something that's really resonating with the creative community that their content is seen, it's curated and it's elevated and that's part of the cultural conversation, both in the theater and on the platform. So there was 60% that was hardly being viewed. . And the best thing that we have going for us right now is all of that hard work that we did, and it was probably two years of work that we did in 10 months, it's now almost -- it's overwhelmingly behind us. Join the Fan Club and bring your traits with you. But the digital inventory, which really held up in the fourth quarter has also softened. Discovery. So that is having some impact on us versus others that were -- that took a much bigger position in the upfront. Clearly, you still have some macro challenges, but what could go right? David Zaslav Praises CNN Adding More GOP Voices; "Balance Strategy" Is "Important," Warner Bros Discovery Boss Says + Discussion: The Wrap, . On FAST, look, the strategy is, I think, back to some of the questions earlier, at the end of the day, one of the advantages we feel like we have is the question keeps coming up about windowing. In addition to less activity in home entertainment, given the leaner theatrical release schedule in 2022, which was very much a result of deliberate decisions we made about specific titles and overall release dates. 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. I saw it and loved it. Your email address will not be published. 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. But as David said, we've got sports and news that today are really untapped in the streaming world, and those are optionality for what we might be willing to do in the future, and we'll share more of that on the 12th with you with more detail. So David, as you said, '22 was a year of really heavy lifting and you had challenges really in every division, whether it was film, advertising, CNN, et cetera -- I mean, macro, et cetera, D2C. Discovery Access Talent Spotlight, candidates must meet the below requirements: Participants must be 18 years or older as of March 1, 2022. With that, I'd now like to turn it back to the operator, and David, JB and I will take your questions. The fourth quarter marked the end of a first and very defining chapter for Warner Bros. We work, grow and create world class content in one of the biggest, busiest studio lots in the industry, as well as at countless studios, sets and offices around the globe. The Roku and the Tubi deal was really just a toe in the water, if you will, 14 channels, a beginning for us, but there'll be more to come as we go through the year, and we do want to have a bigger presence in that space because we do see consumer behavior continuing to shift and having a very robust amount of consumers around the world, who will want to consume ad-supported content. [Operator Instructions] Our first question comes from Jessica Reif Ehrlich with Bank of America. Warner Bros. didn't even have the courtesy to give the "Batgirl" cast and creative team a bat signal that their movie was being locked away in Arkham. I do believe, as JB said, and we do believe, as a company, that we'll sort of recreate this -- the streaming service, which is ad free, then which -- then there'll be ad-lite. Starting with the Studio segment. At Warner Bros. We do expect the cash cost to achieve synergy and transformation efforts will be around the higher end of our $1 billion to $1.5 billion guide given the expanded synergy target, some of which possibly hitting in 2024. https://forms.gle/pSmy15EJENw7foXi9 Advertisements 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. And having some of that content appear on our platform and sell it nonexclusively to others is very economically beneficial. As you look out to '23, I think Gunnar kind of touched on some of the potential tailwinds, but it sounds like you're walking away from close to $12 billion in EBITDA to maybe low to mid-$11 billion in EBITDA. I would now like to hand the call over to Mr. Andrew Slabin, Executive Vice President of Global Investor Strategy. But it's -- we're not going to tell any story before it's done. We have Channing and her team right now with the #1 or #2 show on almost every platform in America where we're selling to all of our -- to our peers in the business. People want to be part of something. Discovery Cuts Scripted Programming at TBS, TNT. In Harry Potter and the Deathly Hallows, readers learned that Albus and Gellert were once friends, before becoming arch-rivals. We have an exceptional leadership team that is truly aligned across a common set of strategic, operational and financial goals and metrics. Such a move has been expected for quite some time, given Warner Bros. And I think our diversity, we have all these different assets that have -- that are different. And having all those distribution outlets gives us the optionality to look at what the data shows us and see where we need to lean in further or not. All U.S. extremist mass killings in 2022 linked to far right, . And that gives us real optionality in terms of nourishing audience for growth and for reduction in churn and for overall price value. [Operator Instructions] I would now like to hand the call over to Mr. Andrew Slabin, Executive Vice President of Global Investor Strategy. In terms of the market itself, it's -- as I've said before, it's not a good environment. Don't forget the 12+ hour blocks of five year old movies every weekend. 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. Here through this post, we are also providing complete necessary details about the Warner Bros Pictures Casting Directors Dates Roles. We've contended with recent share shifts away from our portfolio during the NFL and College Football season and the World Cup. That's not the point. We have a lot of points to be very excited about. We repaid $1 billion of debt during Q4, bringing the total debt repaid since the closing of the transaction to $7 billion, and we ended the quarter with $49.5 billion gross debt and nearly $4 billion of cash on hand, implying net leverage just below 5x. David, maybe just to sort of wrap up that on the content side. These statements are made based on management's current knowledge and assumptions about future events and involve risks and uncertainties that could cause actual results to differ materially from our expectations. I'll talk more about that in a minute. Our next question SP1 Comes from Robert Fishman with SVB MoffettNathanson. Appreciate all the information you just shared. And to that end, we are now confident in a path to at least $4 billion of savings largely addressable through 2024, representing an increase of $500 million over our prior estimate. 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. It's not about getting it out for a certain date. Yes. And HBO is streaming's new must-see TV with all of its cultural impact and excitement. Global core subscribers increased 1.1 million sequentially and 10 million year-on-year, while global ARPU increased as well modestly to $7.58. International, some areas actually trending up now, others still difficult. We're also excited for the release of 4 DC films this year, starting with Shazam in 2 weeks and followed by The Flash, which James Gunn called 1 of the greatest superhero movies ever made, a masterpiece. We've been hard at work since our last call and look forward to updating you on our progress. The 99-year-old movie studio, home to Harry Potter, Batman and Bugs Bunny, will now head in a. The film is set decades before Harry Potters adventures at Hogwarts, and marks an increasingly dark time for the wizarding world. If they ask you to pay a fee in order to audition for a specific role, it's most likely a scam. And now you see a very soft scatter market. Discovery's Q4 Earnings Call. The 50 Best Movies of 2022, According to 165 Critics from . These shows have averaged as many as 20 million viewers in episode with strong week-over-week growth. Our final question comes from John Hodulik with UBS. We have storytelling and games with Hogwarts, which is really off to a tremendous start for us. For those that are happy paying $5 or $7 and having home, food, Discovery and own type content. Stay tuned for more to come on this front. It reminds me of my time at NBC when Thursday Night was must-see TV. I'll just take a swing at it, Gunnar, you can follow. Discovery, Inc. ( NASDAQ: WBD) Q4 2022 Earnings Conference Call February 23, 2023 4:30 PM ET Company Participants Andrew Slabin - Executive Vice President, Global Investor. This information is only for educational purposes use. We have profitable subscribers that are very happy with the product offering of Discovery+, why would we shut that off. Number two, partnering with our business leaders to embrace a more rigorous analytical framework through which capital allocation decisions will be viewed, particularly as we refine how our content is monetized and windowed. And so we're going to be -- Casey is the best example of that. During the WBD quarterly earnings call, Zaslav . Passionate about supporting Creatives to develop, produce . Clearly, as we have pointed out as a key risk since the summer, underlying advertising trends, particularly in the U.S., have continued to soften through the fourth quarter, and that was further exacerbated by general entertainment audience declines. Table of Contents Naturally, we are laser-focused on delevering the balance sheet, where I see net leverage very comfortably inside of 4x by the end of 2023 and reiterate our prior guidance to be within the investment grade range by mid-2024 and within our gross leverage target of 2.5x to 3x by the end of 2024. Number three, evaluating capital allocation opportunities with rigor, so that we can both achieve near-term efficiency and enhance long-term asset value and growth. Number four, driving overall efficiency and free cash flow conversion towards our near-term goal of 1/3 to 1/2 conversion of adjusted EBITDA with longer-term upside towards our 60% goal. 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. Participants must have the right to work in the United States or Canada. I'm just wondering if you can talk about some of these assumptions. Discovery CEO David Zaslav wants to redeem his predecessors' failure to rival Disney with its library of intellectual property through an unprecedented focus on tentpole events. Today, with direct-to-consumer, more and more people are joining the party. 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. Warner Bros. Margot Robbie, who plays Barbie, is instantly as Barbie-esque as you could imagine, all blond hair and smiles and bright pink car. And so effectively, whether you want to look at content for free, you want to look at with edge, you want to look at you want a premium that we -- you would have all that opportunity with us, and it makes sense because we have the largest TV and motion picture library in the world. 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 we're seeing some real opportunity here. That's the power of streaming. HBO and HBO Max Hit with 70 Layoffs at Warner Bros. And I think there was a lot left on the table. The sequel to Fantastic Beasts and Where to Find Them is slated for release 16 November 2018, and filming begins this summer. But we -- I believe that we have an overwhelming advantage in the marketplace with the IP that we own, but to take -- to get that advantage, we have to create great content with that IP. Social media explodes and people are calling their family and friends to talk about what they saw. And so we're feeling more and more confident about that. We've got some tests going on and it's very early, but some of the numbers that are coming in are looking exciting. The studio is looking for young people to play five new roles in the film, including teenage incarnations of Newt Scamander, Leta Lestrange, Gellert Grindelwald and Albus Dumbledore. Many of those people are going to want to move up to a bigger product, more robust with a bigger offering. International markets continue to perform relatively better, stronger markets such as Poland and Italy were in part offset by weaknesses in the UK, Nordics and certain Latin American countries. Operator. And that isn't critical to or helpful to churn. Warner Bros. media commentator focused on TV Production, Consumer Tech, SVOD & Sports Broadcasting . Delivering the latest news and official products from the Wizarding World and our partners. A number of your competitors have cut back on the total amount that they're spending on cash content in '23 versus '22. And while this is indeed encouraging, we're hesitant to forecast any meaningful near-term revenue improvement. Obviously, successful films will help your Studio segment earnings. 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. And so we are a storytelling company. And then we have the ability to pick from all of these different baskets to build really what may be most important for us, which is a successful and profitable streaming business. Discovery to Report Fourth Quarter 2022 Earnings: Listen Live on February 23, 2023 at 4:30 p.m. We believe that when you have content that is so good that it hits the gist. Thank you, David. These are huge numbers, particularly in today's day and age of binge viewing, when there is so much content to choose rooms. MACON RUSH CALL BACKGROUND Casting Notice *Warner Bros FEATURE FILM: "The Color Purple-The Musical' LOCATION: Macon, GA By Kevin P. King - April 7, 2022 487 0 Advertisements On Location Casting *RUSH CALL* - TODAY! Sorry, Robert. "We are looking for: single women and men between the ages of 23-35," the official Warner Bros casting call reads. Is that -- it sounds like you guys have, on the one hand, a lot of new programs, a lot of new movies and a lot of new initiatives; but at the same time, pulling some content on the floor. Warner Bros. Really trying to understand how much of the ad impact that you're seeing is kind of coming from the macro environment? So those candidates who are interested must have checked the companys full details. And the good news is we've had a real chance to look at content on each of the platforms over the last two years. But I also think we're very well positioned to grow from here. We brought our losses down considerably and are even more confident in the financial targets we laid out a few quarters ago. We are already seeing a more inclusive range of voices and viewpoints, as demonstrated last month, when over 70 Republicans came on our air during their Congressional speaker election process, a first in a very long time, and we intend to continue advancing on this balanced strategy. We got to take those swings. Leta Lestrange was mentioned in the first Fantastic Beasts film as having a close friendship with Newt at Hogwarts, and her photograph was seen in Newts workshop. Casey and the team continue to fuel critical and audience acclaimed with globally resident content, driving improvements in engagement and churn, which is setting up a nice tailwind into the relaunch. So again, as I said, a similar picture with more diversity. It's just too early to really call a trend change here. And we could see, for instance, at HBO, the majority of viewership of content on HBO was only 40% of the content. Good afternoon, and welcome to Warner Bros. We got some of the best creatives in the industry right now focused on those swings. Of course, the other stipulations include being "willing and available" to film for the duration of the series which could be as long as 12 weeks and will commence around mid-June to mid-August of 2021. company's most recent annual report on Form 10-K and its reports on Form 10-Q and Form 8-K. with that, I am pleased to turn the call over to David. Discovery. In providing projections and other forward-looking statements, the company disclaims any intent or obligation to update them. Discovery experienced a staggering USD 2.1 billion financial setback. And we've lapped that now, and we're seeing some growth now. With the successful launch of Hogwarts Legacy 2 weeks ago, we reimagined 1 of the biggest global franchises in the world. Turning to the quarter, I'd like to quickly take you through some of the puts and takes impacting performance. Thank you for attending today's presentation. 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 TM & WBEI. I have one for David and then one for J.B. or Gunnar. And to that point, I have no doubt that we have years and years of that coming our way. In answering that question, you reiterated something you'd said before, which was an intent to fold the Discovery content into the new product. And together, we are focused on making our businesses better and stronger. A year-over-year increase in corporate expenses were due to a number of factors, almost exclusively related to external market factors such as an incremental $120 million related to underlying rates on our securitization facility. An open casting call has gone out for three actors between the ages of 13 and 16 to play young versions of Newt, Leta, and another character called Sebastian. We have the largest maker and seller of content in the world, and while we've got lots more to do, we are increasingly seeing positive traction and strong proof points. I remain very optimistic about the range of potential outcomes in 2023 and beyond. Ladies and gentlemen, thank you for standing by, and welcome to Warner Bros. We have full command and control of our business, and we are one company now. Looking ahead within the Studio, 2023 will be a pivotal year, particularly behind our larger and broader release slates at both Warner Bros. Pictures and DC, not to mention a wonderful start with Hogwarts Legacy on the game side. The advertising environment in the U.S. remains very . And where does the WBD fit in that? However, we remain very enthused about the trend line here, and I have greater and greater confidence in our ability to achieve our long-term segment targets of breakeven in the U.S. in 2024 and $1 billion of profitability in 2025 globally. For additional information on important factors that could affect these expectations, please see the company's filings with the U.S. Securities and Exchange Commission, including, but not limited to, the company's most recent annual report on Form 10-K and its reports on Form 10-Q and Form 8-K. A copy of our Q4 earnings release, trending schedule and accompanying slide deck is available on our website at ir.wbd.com. We continue to expect to convert 1/3 to half of EBITDA into free cash flow, as I stated earlier, with the key determinants and drivers of growth being the magnitude of EBITDA, net cash content spend, the impact of working capital initiatives, and the timing and magnitude of a trend change in the advertising market. And the response from consumers has been overwhelmingly positive. To apply for the Fantastic Beasts open casting call, email [emailprotected] with a recent colour photograph, (i.e., taken within the last two months), contact telephone number, your home address and date of birth. More details on the decision to have Wonder Woman 1984 debut in theaters and on HBO Max at the same time have been revealed, and it turns out there's a good reason for handling the sequel this way. W arner Bros. Pictures and the filmmakers behind the Fantastic Beasts sequel are holding open calls for five young actors to join the cast of the film. Our next question comes from Brett Feldman with Goldman Sachs. And back then, you had to watch the show on Thursday night. We are laser-focused on delivering against our high-level strategic, operational and financial targets, and the three pillars that comprise our core principles. 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. Webcast. If you look at D.C., Harry Potter and Lord of the Rings, and then you take a look at Warner as a company without those three, okay? It's working. China said on Monday (local time) it sought dialogue and peace for Ukraine despite US warnings that Beijing might be considering weapons supplies for its ally Russia's bogged-down invasion. The sequential improvement in Q4 free cash flow versus Q3 was the result of greater EBITDA, the timing of interest payments on acquisition debt and some first improvements from working capital initiatives. That HBO Max, whatever we call it on the launch, is a product that we take around the world and that has a real impact on how people consume content. And I'm not taking anything off the table here, but I just want to be realistic as well about what we're seeing today. And on the traditional side, we renewed agreements representing 30% of our U.S. affiliate revenues. We haven't done new Harry Potter content in over a decade. It's working. CNN stands as a premier global news organization, and we wanted to be the place for fact-based reporting and thoughtful discourse that is broader than politics and sport. Discovery, for canceling "Batgirl . Batman Day - September 17, 2022. We believe strongly in the importance of the motion picture window and having that shared experience with other people. So we're excited about the fact that we're going to take all of the Discovery content and put it together with the HBO Max content in a much better platform. [Operator Instructions] Additionally, please be advised that today's conference call is being recorded. The studio is looking for young people to play five new roles in the film, including teenage incarnations of Newt Scamander, Leta Lestrange, Gellert Grindelwald and Albus Dumbledore. On the one hand, we have tremendous breadth with live news, live sports, entertainment, nonfiction, a tremendous share and reach. On the advertising side, it's kind of a complex answer. Yes. And so we'll keep in mind this balance of volume versus price. 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. Before we start, I'd like to remind you that today's conference call will include forward-looking statements that we make pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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. 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. Though we are assuming that things will get better in the second half. While visibility remains limited, we are seeing revenue trends very modestly improving sequentially in certain pockets. We're excited about JV's product relaunch in the second quarter, but those are uncertain factors that's very early in the year. It's the backbone of what we're doing, and we'll keep investing. Would we shut that off creatives in the second half media commentator focused on TV Production, Consumer Tech SVOD. Albus and Gellert were once friends, before becoming arch-rivals understand how of! 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