Discovery Releases Q1 Results

SILVER SPRING: Discovery Communications’ net profit for the first quarter surged to $119 million from the year-ago period’s $34 million, on revenues that were relatively stable at $817 million.

"The growth Discovery delivered in the first quarter despite economic and foreign currency headwinds demonstrates the strength of our business model," said David Zaslav, the president and CEO of Discovery Communications. "Our stable and growing distribution revenue provides a unique resiliency in the face of economic hurdles. In the first quarter, this distribution strength was complemented by domestic advertising revenue growth as we capitalized on increased ratings across the portfolio. The durability of our revenue streams, combined with our ability to control spending, translated into Adjusted OIBDA growth of 9 percent this past quarter, and gives us confidence that we can continue to expand operating margins in today’s challenging environment."

At the U.S. networks, revenues were up by 5 percent to $509 million, with an adjusted OIBDA of $275 million, reflecting a 7-percent hike. Distribution revenues gained 11 percent to $248 million, and ad revenues increased 2 percent to $244 million.

At the international networks, meanwhile, revenues fell 4 percent to $66 million, while adjusted OIBDA increased 20 percent to $96 million. Distribution revenues were stable at $177 million, but ad revenues fell 12 percent to $57 million, largely as a result of unfavorable foreign currency fluctuations.