WORLD SCREEN
Discovery Inc. has reported a rise in net income to $262 million for Q3 2019, compared with a year-ago profit of $117 million.
The gains were primarily due to higher operating results, lower restructuring and other charges and, to a lesser extent, lower interest expense—partially offset by the impact from a non-cash goodwill impairment charge in its Asia-Pacific business.
Revenues increased 3 percent to $2.7 billion—or 5 percent without currency fluctuations.
At the U.S. networks, revenues increased 3 percent to $1.7 billion. Gains in advertising were primarily driven by increases in pricing and, to a lesser extent, the continued monetization of digital content offerings and inventory. This was despite lower overall ratings and the impact of audience declines on the linear networks. Adjusted OIBDA increased 12 percent to $1 billion.
Revenues were up 4 percent to $950 million for the international networks. Growth in advertising was primarily driven by the consolidation of the UKTV Lifestyle Business, expansion of digital content offerings and, in part, higher pricing in certain markets in Europe. Adjusted OIBDA decreased 7 percent to $237 million.
David Zaslav, president and CEO of Discovery, said, “Discovery once again delivered strong financial results across our portfolio, generating healthy revenue growth in the U.S. and internationally, and significant operational efficiencies from our ongoing transformation efforts. We also made progress in the buildout of our digital ecosystems that leverage our owned programming and brand strength. With a solid financial profile and strong balance sheet, we are able to invest meaningfully in our business and create additional value for shareholders.”
