Gunnar Wiedenfels on debt management
From $WBD Warner Bros Discovery Q1 2024 Earnings Conference Call · · EARNMOAR
“I continue to view our debt stack as an important and valuable resource. Our weighted average maturity is roughly 15 years with very manageable average annual maturities for the foreseeable future with maturities in any given year significantly less than what our annual free cash flows have been even normalized for the strikes. Our debt is virtually all fixed with an average cost of 4.6% in line with the yield on comparable US long data treasuries. Based on the difference of current market value to book value reflecting the current rate environment versus when issued we have a $6 billion asset in our debt stack and you should expect that we will begin to be more opportunistic in monetizing this asset as evidenced by the debt tender that we announced this morning.”
On , Gunnar Wiedenfels, Senior EVice President & Chief Financial Officer at Warner Bros Discovery Inc, spoke about debt management during $WBD Warner Bros Discovery Q1 2024 Earnings Conference Call on EARNMOAR.
About Gunnar Wiedenfels
Gunnar Wiedenfels, CFO of Warner Bros. Discovery, has discussed the company's financial performance and strategic direction on recent earnings calls. He noted that the company is working through separation-related expenses, restructuring costs, and fees associated with its sale process and the pending Paramount transaction, which he said will continue to have a "marginal impact" on EBITDA but a more meaningful negative effect on free cash flow in 2026. Wiedenfels stated that the company's net leverage ratio was 3.3 times EBITDA as of the third quarter of 2025, and he expressed an expectation that the standalone "Discovery Global" entity would receive a single-B or low double-B credit rating. Wiedenfels has also addressed the company's content and sports strategies. He said the company has shifted from external to internal monetization of its library, with profits sitting on the balance sheet awaiting reinvestment. Regarding sports rights, he stated that the company will continue to be disciplined but open for business, and he projected a "very significant improvement" in sports rights expenses beginning in the fourth quarter of 2025 and continuing into 2026 as the NBA rights come off the books. He also described the company's linear networks as being managed as content creators across platforms, with growing revenue contributions from streaming.