Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Warner Bros. Discovery: Max’s Global Momentum as the Growth Engine – Will Execution Sustain the Lead?
Warner Bros. Discovery (WBD) posted mixed Q3 2024 results, with revenue of $9.62B falling short of expectations, but GAAP EPS of $0.05 exceeded estimates. The standout performance was in its Direct-to-Consumer (DTC) segment, with Max adding 7.2 million net subscribers and achieving 9% YoY revenue growth. DTC EBITDA grew 175%, driven by strategic expansions and ad-supported tier introductions. Despite challenges in the Networks and Studios segments, WBD demonstrated resilience through structural initiatives, such as innovative partnerships with Charter and Amazon Prime Video, expanding Max’s global footprint. WBD continues to deleverage, with $16 billion in debt reduction, and is positioning itself for long-term growth through its DTC focus, with projections of $1 billion in DTC EBITDA by 2025. The company’s studios segment showed promise with a strong TV production pipeline, though gaming and theatrical results require further recovery. WBD’s strong execution in DTC, coupled with cost discipline and strategic content bundling, supports long-term growth prospects. The global expansion of Max, particularly in underpenetrated markets, is key to its future success. Will WBD maintain its competitive edge in the rapidly evolving media landscape by sustaining the momentum in its DTC business and effectively managing industry challenges?
