Discovery Reports Higher Revenue, Profit

SILVER SPRING: First-quarter revenues at Discovery Communications were up 7 percent, to $1.6 billion, compared to Q1 2012, primarily led by growth at its international networks.

Net income for the first quarter increased 4 percent to $231 million. Adjusted OIBDA slipped $6 million, due in part to the additional costs from the acquisition of the SBS Nordic operations.

The U.S. networks saw revenue gains of 1 percent, to $686 million. Ad growth (up 8 percent) was mostly offset by a decline in distribution revenues (down 9 percent). At the international networks, revenues for the first quarter increased 17 percent, to $444 million. This was driven by a 23-percent growth in ad revenue and 15-percent growth in distribution revenue.

David Zaslav, Discovery’s president and CEO, said, "The significant operating momentum Discovery generated throughout 2012 continued unabated in the first quarter with more and more audiences around the globe viewing our unique programming. The sustained investment we have made in developing compelling content, along with the quality of our brands, translated into further market share gains, with record first quarter viewership at our domestic networks and 16 percent audience growth across our international portfolio. As we continue to invest in the organic growth opportunities our diverse distribution platform provides, we have also completed several strategic acquisitions which we expect will further broaden our asset mix around the world and bolster our long-term growth prospects. 2013 is off to a great start and with continued focus on strong operating execution, we anticipate building on the financial success we have achieved over the last several years while delivering significant shareholder value."