Discovery Reports Q2 Results

SILVER SPRING: Second-quarter revenues rose 11 percent to $963 million at Discovery Communications, which has also announced a $1 billion share repurchase plan.

“Discovery’s second quarter results reflect our strong execution across our portfolio of domestic and international networks," said David Zaslav, president and CEO. "We delivered double-digit revenue and adjusted OIBDA growth, capitalizing on the greater global demand for advertising while continuing to demonstrate the operating leverage inherent in our business model. At the same time we remain focused on further strengthening our global content, with increased investments in Animal Planet and ID translating into ratings and advertising growth domestically, while TLC is expanding its footprint internationally. Lastly, we significantly strengthened our financial position, refinancing $3 billion of debt at historically low interest rates and greatly enhanced our financial flexibility. The combination of our strong operating performance and financial position has enabled us to introduce a $1 billion share repurchase plan to return capital to stockholders.”

The revenue boost included 10-percent growth at the U.S. networks and 15 percent growth at the international networks. Net income was down by 40 percent to $106 million as compared with the year-ago period, which included a gain on the sale of 50 percent of the Discovery Kids channel. Excluding this and other one-time items, net income for the quarter increased by $80 million.

At the U.S. networks, revenues were $620 million, with $263 million in distribution revenues, up 6 percent, and $329 million in ad revenues, up 13 percent. International networks brought in $306 million, with $186 million from distribution, also a 6-percent gain, and $106 million from advertising, a 38-percent gain.