Discovery Q1 Profit Flat

SILVER SPRING: Discovery Communications had first-quarter revenue that was up 22 percent over the previous year to $1.4 billion, though rising costs led to net income being essentially flat.

Revenue was lifted by a 51-percent growth in International Networks and 3-percent growth in U.S. Networks. Adjusted Operating Income Before Depreciation and Amortization (OIBDA) increased 5 percent to $525 million, with International Networks up 18 percent and U.S. Networks up 2 percent.

Net income was $230 million, in line with last year's $231 million. The strong operating performance was more than offset by increased costs associated with the SBS Nordic transaction. It faced tough comparisons with the year-ago results, when the company had a $92-million gain from the consolidation of properties in Japan.

Looking ahead for the full year, Discovery expects total revenue between $6.45 billion and $6.625 billion, adjusted OIBDA between $2.6 billion and $2.725 billion, and net income available to Discovery between $1.2 billion and $1.3 billion.

David Zaslav, Discovery’s president and CEO, said, “Discovery’s strong organic growth continued during the first quarter as our unparalleled global reach and sustained investment in diverse and engaging content allowed us to capitalize on the growing demand for pay-TV programming worldwide. The larger audiences and consistent market share gains we are delivering are driving sustained financial results, even as we further invest in our platforms and integrate strategic acquisitions that will enhance our long-term growth prospects. As we look to the remainder of 2014, leveraging the significant opportunities across our existing asset portfolio remains our priority so we can maintain our financial momentum while further building long-term shareholder value."