Warner Bros. Discovery, Inc.

Ladies and gentlemen, welcome to the Warner Brothers Discovery First Quarter 2025 Earnings Conference Call. At this time, all participants' lines are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. Additionally, please be advised that today's conference call is being recorded. I would now like to hand the conference over to Mr. Andrew Slavin, Executive Vice President, Global Investor and Strategy. You may begin.

Good morning, and thank you for joining us for Warner Brothers Discovery's Q1 Earnings Call. Joining me today is David Zaslav, President and Chief Executive Officer, Gunnar Wiedenfels, Chief Financial Officer, and J.B. Perret, CEO and President, Global Streaming and Games. Today's presentation will include forward-looking statements that we make pursuant to the safe harbor provisions of the Private Security Litigation Reform Act of 1995. The forward-looking statements may include comments regarding the company's future business plans, prospects, and financial performance, and involve risks and uncertainties that could cause actual results to differ materially from our expectations. For additional information on 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. I will turn the call over to David for some brief remarks, after which we will take your questions.

Good morning, everyone. Two years ago, we said, it's not how much, it's how good. And today, that focus on quality is really paying off. Our commitment to high-quality storytelling powered by the most exceptional creative talent in front of and behind the camera, continues to be the engine that powers Warner Brothers Discovery. That engine has never been stronger, more differentiated, and more important, both here in the U.S. and around the world. Whether it's The White Lotus, The Pit, The Last of Us, a Minecraft movie, Sinners, or the Eastern Gate series internationally, When you look at what's shaping culture today, so much is coming from our studios and reaching audiences on our platforms. These stories aren't just watched, but savored. People immerse themselves in them, share them, and return to them. They spark conversation, drive connection, and fuel fandom. And that cultural influence and strength is showing up in our bottom line. On streaming, as you saw in our letter, we delivered another exceptionally strong quarter. Over the last 12 months, we have gained more than 22 million subscribers. And in the first quarter, we gained over 5 million subscribers and delivered 339 million in EBITDA. We are firmly on track to deliver at least 1.3 billion of EBITDA in 2025. up 85% versus 2024, and to surpass our 150 million subscriber goal by the end of next year. What's fueling that success? It's multiple growth levers that provide years of opportunity still ahead. Starting with the best stories from HBO, which is delivering the deepest, most consistent storytelling pipeline in its history. It's local language content and local sports that bolster our relevance in every region in the world. That combination makes us really unique. The impact of our stories is then amplified by our increasingly global footprint that still has almost half the world to go. And it's brought to life by a product that has gotten better at enhancing personalization and engagement. but still has a strong roadmap of improvements ahead. On studios, we are also encouraged by the progress in getting back to our 3 billion in EBITDA goal and growing. That's coming from the strength of Warner Brothers Television, the world's leading independent TV studio, which broadens our cultural and commercial impact onto platforms outside of WBD ecosystem with standout shows. It's also coming from Warner Brothers Motion Pictures, where our strategy of a mix of IP-based blockbusters and compelling new originals is gaining traction and delivering results, as demonstrated by the recent big success of a Minecraft movie and sinners. And Final Destination, which is launching next week, is trending very strong. Looking ahead, We are excited about the strong slate across all of our studios, starting with DC Studios launching Superman in July. We're wrapping on Supergirl and are deep into production on Lanterns, all part of our 10-year plan to reignite the DC brand globally and drive long-term franchise value. What we have now is a powerful combination of a differentiated profitable, and growing global streaming service with a world-class studio business, both being supplemented by the meaningful continued cash generation from our global linear networks. Warner Brothers Discovery's global reach, growth, and the demand for our quality content offerings gives us real confidence in our ability to create long-term sustainable growth and shareholder value. With that, we welcome your questions.