Thread by @Luiz_Fernando_J

Habemus Numbers!!!
During #WBD’s Q3 2022 Earnings Report (JUL-SEP), it’s unveiled 2.8M boost in global DTC subscriptions, citing #HouseOfTheDragon as the main catalyst, but coming below #WallStreet’s 3.3M estimates, reaching 94.9M total #HBOMax+#HBO+#DiscoveryPlus subscribers
1/

According to #WBD, total subscriptions in the US grew 500k, to 53.5M subscribers, and an ARPU of $10.66, a +1.1% increase
Meanwhile overseas markets were the main driver in subscriptions growth, adding 2.3M on Q3 2022, for a 41.4M international total,with an ARPU of just $3.68
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Streaming and subscriptions alone were responsible for 2.3B in revenue, -6% compared to Q3 2021.
Ads revenue more than doubled to $106M, as #HBOMax Ad-tier keeps growing in subscribers.
Even so, overall streaming Costs increased +22% to almost 3B, putting DTC -634M in the red.
3/

biggest challenge for #WBD remains its debt pile, refusing to go down. It finished Q3 with 50.4B in debt, average cost of 4.3%
#WBD paid 2.5B of its debt on Q3 and finished the quarter with -2.3B in losses.
Total Q3 Revenue was 9.8B, also below #WallStreet’s 10.4B expected.
4/

During the Earnings Call happening right now, #WBD affirmed they’re happy with how much they accomplished in just 6 months, but used this period to access every single division of the company and assess what’s working and what’s not working.
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#WBD announced #JamesGunn & #PeterSafran as the heads of #DCStudios, and have been talking for months with both about plans strategies for their most iconic franchises,and they are working at it right now.
#Joker2 starts filming next month.
They mentioned deal with #MattReeves
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#WBD mentioned their big theatrical slate for 2023, including #ShazamFuryOfTheGods, #TheFlash, #BlueBeetle, #DunePart2, #AquamanAndTheLostKingdom, #Wonka, #Barbie, etc.
Also mentioned a new #HarryPotter game for Spring 2023 and a #MortalKombat project celebrating 30 years.
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WBD moved up the launch of the new streaming service combining #Discovery & #HBOMax from SUMMER to SPRING 2023.
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#WBD recognises that they’ve pulled off from global streaming expansion
They mentioned #HouseoftheDragon, #TheBatman, #Euphoria, #Friends, #Succession #BigBangTheory as their biggest hits

Claimed that day&date releases & excessive investment in content were flawed strategies
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Mentioned #HouseOfTheDragon, #Elvis and #BlackAdam as examples of content that helped to increase broad recognition and awareness by audiences of the brands under #WBD.
Theatrical also saw decrease in revenue compared to 2021 due to less titles released in 2022.
10/

#DavidZaslav said he’s bullish on #DC and #HBO content that will improve financial performances in 2023.
About the write offs, said it was necessary to get rid of contents not working or poised to fail, so they can focus and allocate capital to what is working/ has potential.
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Some of the content in WBD’s vast library have been sold and will be sold in the future to others to explore, some will be exclusively explored to third parties, as #WBD search to optimising and increasing content distribution’s revenue, in the US and also internationally.
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#WBD has observed the resistance from #HBOMax subscribers to move to the cheap Ad-tier version. They see this as good news, as an evidence of the pricing power HBOMax has, what will help pricing of the new streaming service in SPRING 2023.
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#WBD reaffirmed the new streaming service combining #HBOMax & #Discovery will be launched only in the countries where #HBOMax currently is across 2023, with new markets only coming in 2024, or through agreements with third parties to distribute their content in those markets
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#WBD mentioned their focus will be in their major franchises that in their views haven’t been explored as much as they should, citing frustration for we “not having a new #Superman film or a #HarryPotter film or a #TheLordOfTheRings film in 30 years” & others not used at all
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“We didn’t get rid of any shows that were helping us”, #DavidZaslav reaffirmed several times, tackling the criticism of the 2.5B in write offs & content impairment at #WBD.
“We have the chance of start over this business”
He has clear vision of the future he envisions for WBD
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#WBD has #NBA cable rights for the next 3 years, but if a new deal happens, should be as good for WBD as for NBA, as WBD’ll have a platform reaching 100M costumers globally & would love to have NBA on it as under 25 demo might have been left out by having it just on cable.
17/17

And yeah, #WallStreet is not pleased at all with #WarnerBrosDiscovery’s performance in Q3 2022, as the $WBD stock, which had already fallen almost -6% earlier today even before results being released, is falling additional -4% after hours, after listening to the investors call.