Second-quarter revenues at Discovery, Inc. were up slightly to $2.9 billion, with gains in the U.S. business partially offset by the impact of foreign currency fluctuations at the international networks.
“We delivered another quarter of strong operating and financial performance, with the benefits of the Scripps Networks acquisition flowing through all areas of our global business, while also accelerating our pivot to digital and direct-to-consumer offerings with IP that powers people’s passions,” said David Zaslav, president and CEO of Discovery. “With an exceptional team in place, strong top-line performance and a healthy balance sheet, we are confident in our ability to continue executing on our strategic priorities to drive long-term growth and shareholder value.”
Higher operating results and a one-time, non-cash tax benefit powered net profit to $947 million, up from $216 million in the same period last year.
U.S. revenues rose by 5 percent to $1.9 billion, with ad revenues up 6 percent to $1.15 billion and distribution revenues up 5 percent to $688 million. Ad revenue gains were driven by price increases, plus the continued monetization of digital content offerings, even as the company reported lower overall ratings and audience declines on its linear networks. Rate increases and streaming carriage deals helped drive distribution revenues, partially offset by a decline in overall subscribers.
At the international networks, revenues slipped by 3 percent to $1 billion, as ad revenues were down to $466 million and distribution revenues fell 3 percent to $518 million, largely as a result of foreign currency fluctuations. Excluding currency issues, ad revenues were up 5 percent—primarily driven by higher pricing in certain markets in Europe, the consolidation of the UKTV lifestyle business and expanded digital content offerings—and distribution revenues gained 3 percent, led by growth in Latin America and certain European markets.