2022.12.31-Exhibit 99.1 Press Release PPT

Q4 and Full-Year 2022 Earnings Press Release | February 23, 2023

Q4 Financial Summary & Operational Highlights

Warner Bros. Discovery, Inc. Reports

Fourth-Quarter 2022 Earnings Results

2022 2021 % Change

$ in millions

Actual

Pro Forma

Adjustments

Pro Forma

Combined Actual

Pro Forma

Adjustments

Pro Forma

Combined Actual

Pro Forma

Combined

(Actual)

Combined

(ex-FX)

(*)

Total revenues $ 11,008 $ — $ 11,008 $ 3,187 $ 9,226 $ 12,413 NM (11) % (9) %

Net (loss) income available to

Warner Bros. Discovery, Inc.

(2,101) 693 (1,408) 38 (795) (757) NM NM NM

Adjusted EBITDA

(*)

2,603 — 2,603 1,137 1,604 2,741 NM (5) % (2) %

Cash provided by operating

activities

2,846 884 NM

Reported free cash flow

(*)

2,482 784 NM

Three Months Ended

December 31,

Pro forma combined results represent the combined results of the Company and the WarnerMedia business as if the transaction whereby the Company acquired the WarnerMedia

business (the "Merger") had been completed on January 1, 2021. Pro forma adjustments for Q4 2021 represent the WarnerMedia business's results for Q4 2021. Refer to page 13

for more information.

NM - Not meaningful

(*) A non-GAAP financial measure; see the section starting on page 13 titled Definitions & Sources for additional details

• Q4 total revenues were $11,008 million. Revenues decreased 9% ex-FX

(1)(*)

compared to the prior year quarter, on a

combined basis

(2)

• Net loss available to Warner Bros. Discovery, Inc. was $(2,101) million, and included $1,850 million of pre-tax amortization

from acquisition-related intangible assets and $1,198 million of pre-tax restructuring expenses.

• Q4 total Adjusted EBITDA

(3)(*)

was $2,603 million. Adjusted EBITDA decreased 2% ex-FX compared to the prior year

quarter, on a combined basis.

• Q4 cash provided by operating activities increased to $2,846 million and reported free cash flow

(4)(*)

increased to $2,482

million.

• Ended Q4 with $3.9 billion of cash on hand, $49.5 billion of gross debt

(5)(*)

, and 5.0x net leverage

(6)(*)

• Global DTC subscribers

(7)

increased 1.1 million to 96.1 million at the end of Q4 versus 95.0 million subscribers at the end

of Q3, helped in part by the re-launch of HBO Max on Amazon Channels in December 2022.

• In Q4, TBS, TLC, and TNT were among the top-5 cable networks in Primetime for adults 25-54

(8)

• Continued strength in storytelling as highlighted by our 22 nominations

(9)

and 8 wins

(10)

at the 80th Golden Globe

Awards,

and our 14 Academy Award

nominations, including Best Picture and Best Actor in a Leading Role nods for Warner Bros.

Pictures’ Elvis

(11)

With the major restructuring decisions behind us, this year we are focused on building and

growing our businesses for the future, and we're off to a great start. We're seeing strong

momentum across the enterprise, including our exciting long-term plans for DC Studios,

the historic success of our latest HBO series The Last of Us, the significant financial and

operating gains in DTC, and the record sales of our newest game Hogwarts Legacy. And

with our unparalleled portfolio of assets and IP, a growing roster of exceptional creative

talent, and some of the buzziest storytelling in the industry, we believe we have re-

positioned our businesses to take full advantage of the many opportunities ahead.

– David Zaslav, President & CEO

• Studios revenues were $3,842 million. Revenues decreased 23% ex-FX compared to the prior year quarter, on a pro forma combined

basis.

• Content revenue decreased 24% ex-FX, primarily driven by lower TV licensing, and to a lesser extent, lower games and home

entertainment revenues.

• TV licensing revenue declined mainly due to TV licensing deals in the prior year quarter.

• Games and home entertainment revenues were lower due to COVID-induced demand in the prior year. Home entertainment

revenue was further impacted by fewer new theatrical releases in the current year.

• Studios operating expenses were $3,074 million. Operating expenses decreased 20% ex-FX compared to the prior year quarter, on a pro

forma combined basis.

• Costs of revenues decreased 19% ex-FX, primarily driven by lower content expense and distribution fees related to the TV licensing

deals in the prior year quarter.

• SG&A expenses decreased 24% ex-FX, primarily driven by lower marketing expenses due to fewer theatrical new releases. Black

Adam was released in Q4 2022 compared to Dune, The Matrix Resurrections, King Richard, and The Many Saints of Newark in the

prior year quarter.

• Studios Adjusted EBITDA was $768 million. Adjusted EBITDA decreased 34% ex-FX compared to the prior year quarter, on a pro forma

combined basis.

2022 2021 % Change

$ in millions

Actual Actual

Pro Forma

Adjustments

Pro Forma

Combined Actual

Pro Forma

Combined

(Actual)

Pro Forma

Combined

(ex-FX)

(*)

Advertising $ (3) $ — $ 40 $ 40 NM NM NM

Distribution 4 — 4 4 NM — % — %

Content 3,631 7 4,910 4,917 NM (26) % (24) %

Other 210 — 188 188 NM 12 % 11 %

Total revenues 3,842 7 5,142 5,149 NM (25) % (23) %

Costs of revenues (excluding depreciation &

amortization)

2,547 1 3,205 3,206 NM (21) % (19) %

Selling, general and administrative 527 — 723 723 NM (27) % (24) %

Adjusted EBITDA $ 768 $ 6 $ 1,214 $ 1,220 NM (37) % (34) %

Studios Segment

Pro forma combined results represent the combined results of the Company and the WarnerMedia business as if the Merger had been completed on January 1, 2021. Pro forma

adjustments for Q4 2021 represent the WarnerMedia business's results for full Q4 2021. Refer to page 13 for more information.

NM - Not meaningful

(*) A non-GAAP financial measure; see the section starting on page 13 titled Definitions & Sources for additional details

Q4 2022 Highlights

Manifest

Warner Bros. Television Group

Three Months Ended

December 31,

Q4 and Full-Year 2022 Earnings Press Release | February 23, 2023

Abbott Elementary

Warner Bros. Television Group

Networks Segment

2022 2021 % Change

$ in millions

Actual Actual

Pro Forma

Adjustments

Pro Forma

Combined Actual

Pro Forma

Combined

(Actual)

Pro Forma

Combined

(ex-FX)

(*)

Advertising $ 2,226 $ 1,654 $ 1,029 $ 2,683 35 % (17) % (14) %

Distribution 2,874 1,087 1,928 3,015 NM (5) % (2) %

Content 307 165 127 292 86 % 5 % 7 %

Other 112 12 33 45 NM NM NM

Total revenues 5,519 2,918 3,117 6,035 89 % (9) % (6) %

Costs of revenues (excluding depreciation &

amortization)

2,278 886 1,539 2,425 NM (6) % (3) %

Selling, general and administrative 763 539 353 892 42 % (14) % (11) %

Adjusted EBITDA $ 2,478 $ 1,493 $ 1,225 $ 2,718 66 % (9) % (7) %

Three Months Ended

December 31,

• Networks revenues were $5,519 million. Revenues decreased 6% ex-FX compared to the prior year quarter, on a pro forma combined basis.

• Advertising revenue decreased 14% ex-FX, primarily driven by audience declines in domestic general entertainment networks and soft

advertising markets mainly in the U.S., and to a lesser extent, certain international markets.

• Distribution revenue decreased 2% ex-FX, as increases in contractual affiliate rates in the U.S. and premium sports packages in Latin

America were more than offset by a decline in pay-TV subscribers in the U.S. and lower contractual affiliate rates in some European

markets.

• Content revenue increased 7%, primarily driven by third-party content licensing deals globally.

• Other revenue increased to $112 million, primarily due to services provided to the unconsolidated BT Sport joint venture.

• Networks operating expenses were $3,041 million. Operating expenses decreased 5% ex-FX compared to the prior year quarter, on a pro

forma combined basis.

• Costs of revenues decreased 3% ex-FX, primarily driven by lower content expense, partially offset by costs associated with the

unconsolidated BT Sport joint venture.

• SG&A expenses decreased 11% ex-FX, primarily due to lower personnel and marketing expenses.

• Networks Adjusted EBITDA was $2,478 million. Adjusted EBITDA decreased 7% ex-FX compared to the prior year quarter, on a pro forma

combined basis.

Fixer Upper: The Castle

Magnolia Network

Election Night in America

CNN

Inside The NBA

TNT

Steel Buddies Stahlharte

Geschäfte

DMAX

Q4 2022 Highlights

Pro forma combined results represent the combined results of the Company and the WarnerMedia business as if the Merger had been completed on January 1, 2021. Pro forma

adjustments for Q4 2021 represent the WarnerMedia business's results for full Q4 2021. Refer to page 13 for more information.

NM - Not meaningful

(*) A non-GAAP financial measure; see the section starting on page 13 titled Definitions & Sources for additional details

Q4 and Full-Year 2022 Earnings Press Release | February 23, 2023

• Total DTC subscribers

(7)

were 96.1 million, an increase of 1.1 million global subscribers since the end of Q3. Global DTC ARPU

(12)

was $7.58.

• DTC revenues were $2,451 million. Revenues increased 6% ex-FX compared to the prior year quarter, on a pro forma combined basis.

• Advertising revenue increased 75% ex-FX, primarily driven by subscriber growth on our DTC ad-supported tiers.

• Distribution revenue increased 2% ex-FX, as global retail subscriber gains were partially offset by a decline in wholesale revenues.

• Content revenue increased 28% ex-FX, primarily driven by higher third party licensing of HBO content.

• DTC operating expenses were $2,668 million. Operating expenses decreased 12% ex-FX compared to the prior year quarter, on a pro forma

combined basis.

• Costs of revenues increased 6% ex-FX, primarily driven by increased content expense.

• SG&A decreased 42% ex-FX, primarily driven by lower marketing spend.

• DTC Adjusted EBITDA was $(217) million, a $511 million year-over-year improvement in losses on a pro forma combined basis.

2022 2021 % Change

$ in millions

Actual Actual

Pro Forma

Adjustments

Pro Forma

Combined Actual

Pro Forma

Combined

(Actual)

Pro Forma

Combined

(ex-FX)

(*)

Advertising $ 123 $ 44 $ 26 $ 70 NM 76 % 75 %

Distribution 2,084 217 1,880 2,097 NM (1) % 2 %

Content 243 1 190 191 NM 27 % 28 %

Other 1 — 2 2 NM (50) % — %

Total revenues 2,451 262 2,098 2,360 NM 4 % 6 %

Costs of revenues (excluding depreciation &

amortization)

2,011 178 1,760 1,938 NM 4 % 6 %

Selling, general and administrative 657 334 816 1,150 97 % (43) % (42) %

Adjusted EBITDA $ (217) $ (250) $ (478) $ (728) 13 % 70 % 70 %

Three Months Ended

December 31,

In millions, except ARPU

Q4 2022 Q3 2022 Q4 2021

Total subscribers

(7)

54.6 53.6 51.2

ARPU

(12)

$ 10.83 $ 10.66

Total subscribers

(7)

41.5 41.4 34.9

ARPU

(12)

$ 3.71 $ 3.68

Total DTC subscribers

(7)

96.1 95.0 86.2

Global ARPU

(12)

$ 7.58 $ 7.52

DTC Subscribers

Direct-to-Consumer Segment

The White Lotus

HBO

International

Domestic

Note: Domestic includes the U.S. and Canada. Prior year

subscribers have been recast to reflect the Company's

harmonized definition. Refer to page 14 for more information.

Q4 2022 Highlights

Pro forma combined results represent the combined results of the Company and the WarnerMedia business as if the Merger had been completed on January 1, 2021. Pro forma

adjustments for Q4 2021 represent the WarnerMedia business's results for full Q4 2021. Refer to page 13 for more information.

NM - Not meaningful

(*) A non-GAAP financial measure; see the section starting on page 13 titled Definitions & Sources for additional details

House of the Dragon

HBO

Q4 and Full-Year 2022 Earnings Press Release | February 23, 2023

2022 2021 % Change

$ in millions

Actual Actual

Pro Forma

Adjustments

Pro Forma

Combined Actual

Pro Forma

Combined

(Actual)

Pro Forma

Combined

(ex-FX)

(*)

Adjusted EBITDA $ (451) $ (112) $ (294) $ (406) NM (11) % (14) %

Three Months Ended

December 31,

Corporate

Inter-segment Eliminations

2022 2021 % Change

$ in millions

Actual Actual

Pro Forma

Adjustments

Pro Forma

Combined Actual

Pro Forma

Combined

(Actual)

Pro Forma

Combined

(ex-FX)

(*)

Inter-segment revenue eliminations $ (832) $ — $ (1,145) $ (1,145) NM 27 % 27 %

Inter-segment expense eliminations (857) — (1,082) (1,082) NM 21 % 21 %

Adjusted EBITDA $ 25 $ — $ (63) $ (63) NM NM NM

Three Months Ended

December 31,

Pro forma combined results represent the combined results of the Company and the WarnerMedia business as if the Merger had been completed on January 1, 2021. Pro forma

adjustments for Q4 2021 represent the WarnerMedia business's results for full Q4 2021. Refer to page 13 for more information.

NM - Not meaningful

(*) A non-GAAP financial measure; see the section starting on page 13 titled Definitions & Sources for additional details

Pro forma combined results represent the combined results of the Company and the WarnerMedia business as if the Merger had been completed on January 1, 2021. Pro forma

adjustments for Q4 2021 represent the WarnerMedia business's results for full Q4 2021. Refer to page 13 for more information.

NM - Not meaningful

(*) A non-GAAP financial measure; see the section starting on page 13 titled Definitions & Sources for additional details

• Fees related to the Company's securitization facility, which are captured in SG&A, increased $119 million year over year as a result of higher

interest rates, which more than offset lower overhead costs.

Q4 and Full-Year 2022 Earnings Press Release | February 23, 2023

2022 2021 % Change

$ in millions

Actual

Pro Forma

Adjustments

Pro Forma

Combined Actual

Pro Forma

Adjustments

Pro Forma

Combined Actual

Pro Forma

Combined

(Actual)

Combined

(ex-FX)

(*)

Studios $ 9,731 $ 4,067 $ 13,798 $ 20 $ 14,989 $ 15,009 NM (8) % (6) %

Networks 19,348 3,838 23,186 11,311 12,919 24,230 71 % (4) % (2) %

DTC 7,274 2,419 9,693 860 8,405 9,265 NM 5 % 6 %

Corporate & Eliminations (2,536) (1,046) (3,582) — (3,178) (3,178) NM (13) % (13) %

Total revenues 33,817 9,278 43,095 12,191 33,135 45,326 NM (5) % (3) %

Net (loss) income available to

Warner Bros. Discovery, Inc.

(7,371) 2,012 (5,359) 1,006 (4,756) (3,750) NM NM NM

Studios 1,772 977 2,749 14 2,631 2,645 NM 4 % 8 %

Networks 8,725 1,326 10,051 5,533 5,454 10,987 58 % (9) % (7) %

DTC (1,596) (467) (2,063) (1,345) (520) (1,865) (19) % (11) % (11) %

Corporate & Eliminations (1,183) (380) (1,563) (385) (956) (1,341) NM (17) % (19) %

Adjusted EBITDA

(*)

$ 7,718 $ 1,456 $ 9,174 $ 3,817 $ 6,609 $ 10,426 NM (12) % (10) %

Elvis

Warner Bros.

Full-year 2022 Consolidated Results

DC League of Super-Pets

Warner Bros.

Pro forma combined results represent the combined results of the Company and the WarnerMedia business as if the Merger had been completed on January 1, 2021. Pro forma

adjustments for 2022 represent the WarnerMedia business's results for January 1, 2022 through April 8, 2022. Pro forma adjustments for 2021 represent the WarnerMedia

business's results for the entirety of 2021. Refer to page 13 for more information.

NM - Not meaningful

(*) A non-GAAP financial measure; see the section starting on page 13 titled Definitions & Sources for additional details

The Sandman

Warner Bros. Television Group

Twelve Months

Ended December 31,

• Full-year total revenues were $33.8 billion. Total revenues decreased 3% ex-FX

compared to the prior year, on a combined basis.

• Studios revenues were $9.7 billion. Pro forma revenues decreased 6% ex-FX as higher theatrical film rental revenues and a

record year for our Global Brands & Experiences business were more than offset by lower TV licensing and home

entertainment revenues.

• Networks revenues were $19.3 billion. Pro forma revenues decreased 2% ex-FX as both advertising and distribution revenues

declined. Advertising was impacted by audience declines in domestic general entertainment and news networks, partially offset

by the carriage of the NCAA Final Four and the first year of the NHL contract. Distribution was impacted by continued

subscriber declines in the U.S. and lower affiliate rates in some European markets, partially offset by contractual affiliate rate

increases in the U.S.

• DTC revenues were $7.3 billion. Revenues increased 6% ex-FX as subscriber growth from our ad-lite products, higher third-

party licensing of HBO content, and global retail subscriber gains were partially offset by lower wholesale revenues mainly due

to the expiration of HBO Max on Amazon Channels in September 2021. HBO Max re-launched on Amazon Channels in

December 2022.

• Net loss available to Warner Bros. Discovery, Inc. was $(7.4) billion, and included $6.2 billion of pre-tax amortization from acquisition-

related intangible assets and $3.8 billion of pre-tax restructuring expenses.

• Full-year total Adjusted EBITDA was $7.7 billion. Total Adjusted EBITDA decreased 10% ex-FX compared to the prior year, on a

combined basis.

• Studios Adjusted EBITDA was $1.8 billion. Adjusted EBITDA increased 8% ex-FX as revenue declines were more than offset by

lower television product content expense and distribution fees due to TV licensing deals in the prior year and lower marketing

due to fewer theatrical new releases in 2022.

• Networks Adjusted EBITDA was $8.7 billion. Adjusted EBITDA decreased 7% ex-FX as revenue declines, coupled with higher

sports and news costs, were partially offset by lower personnel and marketing expenses.

• DTC Adjusted EBITDA was $(1.6) billion. Adjusted EBITDA decreased $198 million year-over-year on a pro forma combined

basis as revenue growth and more efficient marketing spend were more than offset by increased content expense.

Q4 and Full-Year 2022 Earnings Press Release | February 23, 2023

Leverage & Liquidity

• Ended 2022 with $3.9 billion of cash on hand, $49.5 billion of gross debt

(*)

, and 5.0x net leverage

(*)

• In aggregate, the Company has voluntarily repaid $7.0 billion of debt since April 9, 2022, including $1.0 billion of senior notes during the

fourth quarter.

• As of December 31, 2022, the average duration of the Company's outstanding debt was 14 years, with an average cost of debt of 4.3%.

• The Company maintains an undrawn $6.0 billion revolving credit facility.

Reported Free Cash Flow

• Cash provided by operating activities increased to $4,304 million from $2,798 million in the prior year, primarily driven by an increase in

operating profits and working capital initiatives, partially offset by interest payments on incremental debt acquired as part of the Merger, as

well as merger and integration-related costs.

• Reported free cash flow increased to $3,317 million, primarily driven by higher cash from operations, partially offset by higher capital

expenditures from consolidating the WarnerMedia business following the closing of the Merger.

• Full-year 2022 free cash flow was adversely impacted by a net $343 million reduction in the Company's securitization facility and factoring

program since the closing of the Merger.

Full-year 2022 Free Cash Flow Highlights

Full-year 2022 Leverage Highlights

Reported Financial Results

Three Months Ended Twelve Months Ended

$ in millions

2022 2021 % Change 2022 2021 % Change

Cash provided by operating activities $ 2,846 $ 884 NM $ 4,304 $ 2,798 54 %

Purchases of property and equipment (364) (100) NM (987) (373) NM

Reported free cash flow

(*)

$ 2,482 $ 784 NM $ 3,317 $ 2,425 37 %

The above free cash flow reconciliation shows "as reported" financials, which represent the Company's financial results since the closing of the Merger with the WarnerMedia

business on April 8, 2022. Financials for the three months and twelve months ended December 31, 2021 include Discovery, Inc. standalone results only, and do not include the

WarnerMedia business. Financials for the twelve months ended December 31, 2022 include Discovery, Inc. results for January 1, 2022 - December 31, 2022 and WarnerMedia

business results for April 9, 2022 - December 31,2022.

NM - Not meaningful

(*) A non-GAAP financial measure; see the section starting on page 13 titled Definitions & Sources for additional details

Q4 and Full-Year 2022 Earnings Press Release | February 23, 2023

Cautionary Statement Concerning Forward-Looking Statements

Information set forth in this communication contains certain forward-looking statements within the meaning of the safe harbor

provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current

expectations, forecasts, and assumptions that involve risks and uncertainties and on information available to Warner Bros.

Discovery as of the date hereof. The Company’s actual results could differ materially from those stated or implied due to risks

and uncertainties associated with its business, which include the risk factors disclosed in 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 reports on Form 10-Q and Form 8-K.

Forward-looking statements include statements regarding the Company’s expectations, beliefs, intentions or strategies

regarding the future, and can be identified by forward-looking words such as “anticipate,” “believe,” “could,” “continue,”

“estimate,” “expect,” “intend,” “may,” “should,” “will” and “would” or similar words. Forward-looking statements include, without

limitation, statements regarding future financial and operating results, the Company’s plans, objectives, expectations and

intentions, and other statements that are not historical facts. Warner Bros. Discovery expressly disclaims any obligation or

undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change

in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such

statement is based.

2023 Outlook

(13)

Warner Bros. Discovery, Inc. ("Warner Bros. Discovery", the "Company", "we", "us", or "our" ) may provide forward-looking

commentary in connection with this earnings announcement on its quarterly earnings conference call. Details on how to

access the audio webcast are included below.

Q4 2022 Earnings Conference Call Information

Warner Bros. Discovery will host a conference call today, February 23, 2023 at 4:30 p.m. ET, to discuss its fourth quarter 2022

financial results. To access the webcast of the earnings call, please visit the Investor Relations section of the Company's

website at www.wbd.com.

About Warner Bros. Discovery

Warner Bros. Discovery (NASDAQ: WBD) is a leading global media and entertainment company that creates and distributes

the world’s most differentiated and complete portfolio of content and brands across television, film and streaming. Available in

more than 220 countries and territories and 50 languages, Warner Bros. Discovery inspires, informs and entertains audiences

worldwide through its iconic brands and products including: Discovery Channel, discovery+, CNN, DC, Eurosport, HBO, HBO

Max, HGTV, Food Network, OWN, Investigation Discovery, TLC, Magnolia Network, TNT, TBS, truTV, Travel Channel,

MotorTrend, Animal Planet, Science Channel, Warner Bros. Pictures, Warner Bros. Television, Warner Bros. Games, New Line

Cinema, Cartoon Network, Adult Swim, Turner Classic Movies, Discovery en Español, Hogar de HGTV and others. For more

information, please visit www.wbd.com.

Contacts

Media Investor Relations

Nathaniel Brown Andrew Slabin Peter Lee

(212) 548-5959 (212) 548-5544 (212) 548-5907

nathaniel_brown@discovery.com andrew_slabin@discovery.com peter_lee@discovery.com

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), this

communication may also contain certain non-GAAP financial measures, identified with an "(*)". Reconciliations between the

non-GAAP financial measures and the closest GAAP financial measures are available in the financial schedules in this release

and in the "Quarterly Results" section of the Warner Bros. Discovery, Inc. investor relations website at: https://ir.wbd.com.

Q4 and Full-Year 2022 Earnings Press Release | February 23, 2023

Actual Financial Results

Three Months Ended

December 31,

Twelve Months Ended

December 31,

Unaudited; in millions, except per share amounts

2022 2021 2022 2021

Advertising $ 2,285 $ 1,698 $ 8,524 $ 6,194

Distribution 4,962 1,304 16,142 5,202

Content 3,442 173 8,360 737

Other 319 12 791 58

Total revenues 11,008 3,187 33,817 12,191

Costs of revenues, excluding depreciation and amortization 6,954 1,067 20,442 4,620

Selling, general and administrative 2,511 1,069 9,678 4,016

Depreciation and amortization 2,169 539 7,193 1,582

Restructuring 1,198 3 3,757 32

Impairment and loss (gain) on disposition and disposal groups 70 1 117 (71)

Total costs and expenses 12,902 2,679 41,187 10,179

Operating (loss) income (1,894) 508 (7,370) 2,012

Interest expense, net (558) (154) (1,777) (633)

Loss from equity investees, net (25) 2 (160) (18)

Other (expense) income, net (64) (173) 347 72

(Loss) income before income taxes (2,541) 183 (8,960) 1,433

Income tax benefit (expense) 462 (92) 1,663 (236)

Net (loss) income (2,079) 91 (7,297) 1,197

Net income attributable to noncontrolling interests (24) (22) (68) (138)

Net income attributable to redeemable noncontrolling interests 2 (31) (6) (53)

Net (loss) income available to Warner Bros. Discovery, Inc. $ (2,101) $ 38 $ (7,371) $ 1,006

Net (loss) income per share allocated to Warner Bros. Discovery, Inc. Series A common stockholders:

Basic $ (0.86) $ 0.08 $ (3.82) $ 1.55

Diluted $ (0.86) $ 0.08 $ (3.82) $ 1.54

Weighted average shares outstanding:

Basic 2,429 589 1,940 588

Diluted 2,429 663 1,940 664

Warner Bros. Discovery, Inc.

Consolidated Statements of Operations

The above income statement shows "actual" financials, which represent the Company's financial results since the closing of the Merger with the WarnerMedia business on

April 8, 2022. Financials for the twelve months ended December 31, 2022 include Discovery, Inc. results from January 1, 2022 through December 31, 2022 and the

WarnerMedia business's results from April 9, 2022 through December 31, 2022. Financials for the three and twelve months ended December 31, 2021 include Discovery, Inc.

standalone results only, and do not include the WarnerMedia business.

Q4 and Full-Year 2022 Earnings Press Release | February 23, 2023

Actual Financial Results

Unaudited; in millions, except par value December 31, 2022 December 31, 2021

ASSETS

Current assets:

Cash and cash equivalents 3,731 3,905

Receivables, net 6,380 2,446

Prepaid expenses and other current assets 3,888 913

Total current assets 13,999 7,264

Film and television content rights and games 26,652 3,832

Property and equipment, net 5,301 1,336

Goodwill 34,438 12,912

Intangible assets, net 44,982 6,317

Other noncurrent assets 8,629 2,766

Total assets $ 134,001 $ 34,427

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable $ 1,454 $ 412

Accrued liabilities 11,504 2,230

Deferred revenues 1,694 478

Current portion of debt 365 339

Total current liabilities 15,017 3,459

Noncurrent portion of debt 48,634 14,420

Deferred income taxes 11,014 1,225

Other noncurrent liabilities 10,669 1,927

Total liabilities 85,334 21,031

Commitments and contingencies

Redeemable noncontrolling interests 318 363

Warner Bros. Discovery, Inc. stockholders’ equity:

Series A common stock: $0.01 par value; 10,800 and 0 shares authorized; 2,660

and 0 shares issued; and 2,430 and 0 shares outstanding

27 —

Preferred stock: $0.01 par value; 1,200 and 0 shares authorized, 0 shares issued

and outstanding

— —

Discovery Series A-1 convertible preferred stock: $0.01 par value; 0 and 8 shares

authorized, issued and outstanding

— —

Discovery Series C-1 convertible preferred stock: $0.01 par value; 0 and 6 shares

authorized; 0 and 4 shares issued and outstanding

— —

Discovery Series A common stock: $0.01 par value; 0 and 1,700 shares authorized;

0 and 170 shares issued; and 0 and 169 shares outstanding

— 2

Discovery Series B convertible common stock: $0.01 par value; 0 and 100 shares

authorized; 0 and 7 shares issued and outstanding

— —

Discovery Series C common stock: $0.01 par value; 0 and 2,000 shares

authorized; 0 and 559 shares issued; and 0 and 330 shares outstanding

— 5

Additional paid-in capital 54,630 11,086

Treasury stock, at cost: 230 and 230 shares (8,244) (8,244)

Retained earnings 2,205 9,580

Accumulated other comprehensive loss (1,523) (830)

Total Warner Bros. Discovery, Inc. stockholders’ equity 47,095 11,599

Noncontrolling interests 1,254 1,434

Total equity 48,349 13,033

Total liabilities and equity $ 134,001 $ 34,427

Warner Bros. Discovery, Inc.

Consolidated Balance Sheets

Q4 and Full-Year 2022 Earnings Press Release | February 23, 2023

The above balance sheet shows "actual" financials, which represent the Company's financial results since the closing of the Merger with the WarnerMedia business on April

8, 2022. Financials for the twelve months ended December 31, 2022 include Discovery, Inc. results from January 1, 2022 through December 31, 2022 and the WarnerMedia

business's results from April 9, 2022 through December 31, 2022. Financials for the three and twelve months ended December 31, 2021 include Discovery, Inc. standalone

results only, and do not include the WarnerMedia business.

Actual Financial Results

Twelve Months Ended December 31,

Unaudited; in millions

2022 2021

Operating Activities

Net (loss) income $ (7,297) $ 1,197

Adjustments to reconcile net income to cash provided by operating activities:

Content rights amortization and impairment 14,161 3,501

Content restructuring impairments and write-offs 2,889 —

Depreciation and amortization 7,193 1,582

Deferred income taxes (2,842) (511)

Preferred stock conversion premium 789 —

Share-based compensation expense 412 178

Impairment and loss (gain) on disposition and disposal groups 116 (71)

Equity in losses of equity method investee companies and cash distributions 211 63

Gain on sale of investments (199) (19)

Loss on extinguishment of debt — 10

(Gain) loss from derivative instruments, net (501) 49

Other, net 435 56

Changes in operating assets and liabilities, net of acquisitions and dispositions:

Receivables, net 181 47

Film and television content rights, games and payables, net (12,643) (3,381)

Accounts payable, accrued liabilities, deferred revenues and other noncurrent liabilities 1,529 185

Foreign currency, prepaid expenses and other assets, net (130) (88)

Cash provided by operating activities 4,304 2,798

Investing Activities

Purchases of property and equipment (987) (373)

Cash acquired from business acquisition and working capital settlement 3,612 (2)

Proceeds from sales and maturities of investments 306 599

Investments in and advances to equity investments (168) (184)

Proceeds from (payments for) derivative instruments, net 752 (86)

Purchases of investments — (103)

Other investing activities, net 9 93

Cash provided by (used in) investing activities 3,524 (56)

Financing Activities

Principal repayments of term loans (6,000) —

Principal repayments of debt, including premiums to par value and discount payment (1,315) (574)

Distributions to noncontrolling interests and redeemable noncontrolling interests (300) (251)

Borrowings under commercial paper program 2,268 —

Repayments under commercial paper program (2,270) —

Repayments under revolving credit facility (125) —

Borrowings under revolving credit facility 125 —

Other financing activities, net (125) (28)

Cash used in financing activities (7,742) (853)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash (61) (106)

Net change in cash, cash equivalents, and restricted cash 25 1,783

Cash, cash equivalents, and restricted cash, beginning of period 3,905 2,122

Cash, cash equivalents, and restricted cash, end of period $ 3,930 $ 3,905

Warner Bros. Discovery, Inc.

Consolidated Statements of Cash Flows

Q4 and Full-Year 2022 Earnings Press Release | February 23, 2023

The above statement of cash flows shows "actual" financials, which represent the Company's financial results since the closing of the Merger with the WarnerMedia business

on April 8, 2022. Financials for the twelve months ended December 31, 2022 include Discovery, Inc. results from January 1, 2022 through December 31, 2022 and the

WarnerMedia business's results from April 9, 2022 through December 31, 2022. Financials for the three and twelve months ended December 31, 2021 include Discovery, Inc.

standalone results only, and do not include the WarnerMedia business.

Actual Financial Results

Three Months Ended

December 31,

Twelve Months Ended

December 31,

Unaudited; in millions

2022 2021 2022 2021

Net (loss) income available to Warner Bros. Discovery, Inc. $ (2,101) $ 38 $ (7,371) $ 1,006

Net income attributable to redeemable noncontrolling interests (2) 31 6 53

Net income attributable to noncontrolling interests 24 22 68 138

Income tax (benefit) expense (462) 92 (1,663) 236

(Loss) income before income taxes (2,541) 183 (8,960) 1,433

Other expense (income), net 64 173 (347) (72)

Loss from equity investees, net 25 (2) 160 18

Interest expense, net 558 154 1,777 633

Operating (loss) income (1,894) 508 (7,370) 2,012

Impairment and loss (gain) on disposition and disposal groups 70 1 117 (71)

Restructuring 1,198 3 3,757 32

Depreciation and amortization 2,169 539 7,193 1,582

Employee share-based compensation 93 43 410 167

Transaction and integration costs 66 43 1,195 95

Amortization of fair value step-up for content 901 — 2,416 —

Adjusted EBITDA

(*)

$ 2,603 $ 1,137 $ 7,718 $ 3,817

Reconciliation of Net (Loss) Income to

Adjusted Earnings Before Interest,

Taxes, Depreciation, and Amortization

The above reconciliation shows "actual" financials, which represent the Company's financial results since the closing of the Merger with the WarnerMedia business on April 8,

2022. Financials for the twelve months ended December 31, 2022 include Discovery, Inc. results from January 1, 2022 through December 31, 2022 and the WarnerMedia

business's results from April 9, 2022 through December 31, 2022. Financials for the three and twelve months ended December 31, 2021 include Discovery, Inc. standalone

results only, and do not include the WarnerMedia business.

(*) A non-GAAP financial measure; see the section starting on page 13 titled Definitions & Sources for additional details

Q4 and Full-Year 2022 Earnings Press Release | February 23, 2023

Definitions and Sources for

Warner Bros. Discovery, Inc.

(1) Foreign Exchange Impacting Comparability: In addition to the Merger (as defined below), the impact of exchange rates on our

business is an important factor in understanding period-to-period comparisons of our results. For example, our international revenues are

favorably impacted as the U.S. dollar weakens relative to other foreign currencies, and unfavorably impacted as the U.S. dollar strengthens

relative to other foreign currencies. We believe the presentation of results on a constant currency basis ("ex-FX"), in addition to results

reported in accordance with U.S. GAAP provides useful information about our operating performance because the presentation ex-FX

excludes the effects of foreign currency volatility and highlights our core operating results. The presentation of results on a constant currency

basis should be considered in addition to, but not a substitute for, measures of financial performance reported in accordance with U.S. GAAP.

The ex-FX change represents the percentage change on a period-over-period basis adjusted for foreign currency impacts. The ex-FX change

is calculated as the difference between the current year amounts translated at a baseline rate, which is a spot rate for each of our currencies

determined early in the fiscal year as part of our forecasting process (the “2022 Baseline Rate”), and the prior year amounts translated at the

same 2022 Baseline Rate. In addition, consistent with the assumption of a constant currency environment, our ex-FX results exclude the

impact of our foreign currency hedging activities, as well as realized and unrealized foreign currency transaction gains and losses. Results on

a constant currency basis, as we present them, may not be comparable to similarly titled measures used by other companies.

(2) Pro Forma Combined Financial Information: The unaudited pro forma combined financial information in this press release presents the

combined results of the Company and the WarnerMedia business as if the transaction whereby the Company acquired the WarnerMedia

business (the "Merger") had been completed on January 1, 2021. Management believes reviewing our actual operating results in addition to

pro forma combined results is useful in identifying trends in, or reaching conclusions regarding, the overall operating performance of our

businesses. Our combined Networks, DTC, Studios, Corporate, and inter-segment eliminations pro forma combined financial information is

based on the historical operating results of the respective segments and includes adjustments in accordance with Article 11 of Regulation S-X

to illustrate the effects of the Merger as if it had occurred on January 1, 2021. The unaudited pro forma financial information is presented for

informational purposes and is not indicative of the results of operations that would have been achieved if the Merger had occurred on January

1, 2021, nor is it indicative of future results. The unaudited pro forma combined financial information includes, where applicable, adjustments

for (i) additional costs of revenues from the fair value step-up of film and television library, (ii) additional amortization expense related to

acquired intangible assets, (iii) additional depreciation expense from the fair value of property and equipment, (iv) transaction costs and other

one-time non-recurring costs, (v) additional interest expense for borrowings related to the Merger and amortization associated with fair value

adjustments of debt assumed, (vi) changes to align accounting policies, (vii) elimination of intercompany activity, and (viii) associated tax-

related impacts of adjustments. These pro forma adjustments are based on available information as of the date hereof and upon assumptions

that the Company believes are reasonable to reflect the impact of the Merger with the WarnerMedia business on the Company's historical

financial information on a supplemental pro forma basis.

Adjustments do not include costs related to integration activities, cost savings or synergies that have been or may be achieved by the

combined business.

We may refer to total company results (ex. Revenues, Adj. EBITDA) as "combined basis."

For historical pro forma financial information including segment level detail and reconciliations of non-GAAP metrics to their GAAP equivalent,

please refer to the Trending Schedules and Non-GAAP Reconciliations posted in the "Quarterly Results" section of the Company's investor

relations website (https://ir.wbd.com).

(3) Adjusted EBITDA: The Company evaluates the operating performance of its operating segments based on financial measures such as

revenues and Adjusted EBITDA. Adjusted EBITDA is defined as operating income excluding: (i) employee share-based compensation,

(ii) depreciation and amortization, (iii) restructuring and facility consolidation, (iv) certain impairment charges, (v) gains and losses on

business and asset dispositions, (vi) certain inter-segment eliminations, (vii) third-party transaction and integration costs, (viii) amortization of

purchase accounting fair value step-up for content, (ix) amortization of capitalized interest for content, and (x) other items impacting

comparability.

The Company uses this measure to assess the operating results and performance of its segments, perform analytical comparisons, identify

strategies to improve performance, and allocate resources to each segment. The Company believes Adjusted EBITDA is relevant to investors

because it allows them to analyze the operating performance of each segment using the same metric management uses. The Company

excludes employee share-based compensation, restructuring, certain impairment charges, gains and losses on business and asset

dispositions, and transaction and integration costs from the calculation of Adjusted EBITDA due to their impact on comparability between

periods.

The Company also excludes the depreciation of fixed assets and amortization of intangible assets, amortization of purchase accounting fair

value step-up for content, and amortization of capitalized interest for content, as these amounts do not represent cash payments in the

current reporting period. Certain corporate expenses and inter-segment eliminations related to production studios are excluded from segment

results to enable executive management to evaluate segment performance based upon the decisions of segment executives. Adjusted

EBITDA should be considered in addition to, but not a substitute for, operating income, net income, and other measures of financial

performance reported in accordance with U.S. GAAP.

Q4 and Full-Year 2022 Earnings Press Release | February 23, 2023

(4) Free cash flow: The Company defines free cash flow as cash flow from operations less acquisitions of property and equipment. The

Company believes free cash flow is an important indicator for management and investors of the Company’s liquidity, including its ability to reduce

debt, make strategic investments, and return capital to stockholders.

(5) Gross debt: The Company defines gross debt of $49.5 billion as total debt of $49.3 billion, plus finance leases of $268 million. The Company

believes this measure is relevant to investors as it is a financial measure frequently used in evaluating a company's financial condition.

(6) Net leverage: The Company defines net leverage as the calculation where net debt (gross debt of $49.5 billion, less cash, cash equivalents,

and restricted cash of $1.0 billion) is divided by the sum of the most recent four quarters Adjusted EBITDA of $9,174 million. The Company

believes this measure is relevant to investors as it is a financial measure frequently used in evaluating a company's financial condition.

Please refer to the Trending Schedules and Non-GAAP Reconciliations posted in the "Quarterly Results" section of the Company's investor

relations website (https://ir.wbd.com) for the full reconciliation of net leverage.

(7) Direct-to-Consumer ("DTC") Subscriber: The Company defines a “DTC Subscription” as: (i) a retail subscription to discovery+, HBO or

HBO Max for which we have recognized subscription revenue, whether directly or through a third party, from a direct-to-consumer platform;(ii) a

wholesale subscription to discovery+, HBO, or HBO Max for which we have recognized subscription revenue from a fixed-fee arrangement with a

third party and where the individual user has activated their subscription; (iii) a wholesale subscription to discovery+, HBO or HBO Max for which

we have recognized subscription revenue on a per subscriber basis; and (iv) users on free trials who convert to a subscription for which we have

recognized subscription revenue within the first seven days of the calendar month immediately following the month in which their free trial

expires.

We may refer to the aggregate number of DTC Subscriptions as “subscribers."

We define a Domestic subscriber as a subscription based either in the United States of America or Canada. We define an International

subscriber as a subscription based outside of the United States of America or Canada.

The reported number of “subscribers” included herein and the definition of “DTC Subscription” as used herein excludes: (i) individuals who

subscribe to DTC products, other than discovery+, HBO and HBO Max, that may be offered by us or by certain joint venture partners or affiliated

parties from time to time; (ii) a limited number of international discovery+ subscribers that are part of non-strategic partnerships or short-term

arrangements as may be identified by the Company from time to time; (iii) domestic and international Cinemax subscribers, and international

basic HBO subscribers; and (iv) users on free trials except for those users on free trial that convert to a DTC Subscription within the first seven

days of the next month as noted above.

(8) Source: Nielsen, 4Q22 (9/26/22-12/25/22), Live+3 program-based data (000)s, Primetime, Ad-supported cable, excl. breakouts and nets with

less than 50% duration per day. Actual rankings were: #2 TBS, #4 TLC, and #5 TNT.

(9) Source: Golden Globe

Awards press release dated December 12, 2022 (https://www.goldenglobes.com/articles/golden-globes-2023-

nominations-80th-golden-globes-have-been-announced).

(10) Source: Golden Globe

Awards press release dated January 10, 2023 (https://www.goldenglobes.com/articles/golden-globes-2023-

winners-80-golden-years).

(11) Source: Academy Award

press release dated January 24, 2023 (https://press.oscars.org/news/95th-oscarsr-nominations-announced).

(12) ARPU: The Company defines DTC Average Revenue Per User ("ARPU") as total subscription revenue plus net advertising revenue for the

period divided by the daily-average number of paying subscribers for the period. Where daily values are not available, the sum of beginning of

period and end of period divided by two is used.

Excluded from the ARPU calculation are: (i) HBO Max/HBO Hotel and Bulk Institution subscription revenue and subscribers (i.e., subscribers

billed on a bulk basis); (ii) Cinemax subscription revenue and subscribers; (iii) HBO Basic subscription revenue and subscribers (International-

only); (iv) Non-discovery+ DTC revenue and subscribers; and (v) Non-Core discovery+ revenue and subscribers, and (vi) users on free trials who

convert to a subscription for which we have recognized subscription revenue within the first seven days of the calendar month.

(13) 2023 outlook: Warner Bros. Discovery is not able to provide a reconciliation of the non-GAAP forward-looking commentary to comparable

GAAP measures as, at this time, the Company cannot determine the occurrence or impact of the adjustments, such as the effect of future

changes in foreign currency exchange rates or future acquisitions or divestitures that would be excluded from such GAAP measures. Accordingly,

the Company is relying on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K to exclude these reconciliations.

Source: Warner Bros. Discovery, Inc.

Definitions and Sources for

Warner Bros. Discovery, Inc. Continued

Q4 and Full-Year 2022 Earnings Press Release | February 23, 2023