Discovery Revenues Up 9 Percent

SILVER SPRING: Strong ad revenue gains at its international networks helped drive Discovery Communications’ first-quarter revenues up by 9 percent to $951 million.

Net profit for the company, meanwhile, almost doubled to $305 million. The quarter includes a gain of $102 million, net of tax, as a result of contributing the domestic Discovery Health network to the OWN: Oprah Winfrey Network joint venture.

U.S. network revenues were up 8 percent to $587 million, including $274 million in distribution revenues, a 6-percent gain, and $290 million in ad revenues, a 9-percent gain. At the international networks, revenues increased by 14 percent to $323 million, with distribution revenues up 11 percent to $206 million and ad revenues gaining 24 percent to $102 million.

"Discovery’s strong first quarter results reflect the operating momentum we are generating across our global portfolio in a continued favorable economic climate," said David Zaslav, Discovery’s president and CEO. "Our consistent investment in content over the past four years, along with a drive to expand our subscriber base domestically and internationally, has enabled Discovery to grow our audiences across the globe. Once again this quarter, we recognized the value of our increased viewership through double digit advertising gains that further built upon the strength we demonstrated throughout 2010. Moving forward, with advertising revenues expanding and predictable distribution revenues continuing to grow, we remain focused on delivering sustained operating leverage and free cash flow growth, while also continuing to invest in Discovery’s diverse set of brands and platforms around the world."