Merger Costs Impact Discovery Profits

Second-quarter net income at Discovery, Inc. fell from $374 million to $216 million as a result of restructuring charges from the Scripps Networks transaction, on combined revenues of $2.8 billion.

“We delivered solid financial results in our first full quarter as a combined company and continued to make great progress with our integration of Scripps Networks Interactive and our pivot to digital, mobile and direct-to-consumer products and services,” said David Zaslav, president and CEO of Discovery. “As the global leader in real-life entertainment, we are uniquely positioned in the media marketplace to deliver long-term value for our passionate superfans, shareholders and business partners around the world.”

The U.S. networks delivered revenues of $1.8 billion, including $654 million in distribution revenues and $1.1 billion in ad revenues. On a pro forma combined basis, U.S. networks’ revenues increased 1 percent, with 1 percent gains in distribution and ad revenues and a 10-percent reduction in other revenues. Total portfolio subscribers declined 5 percent, while subscribers to fully distributed networks declined 3 percent.

International revenues reached $1.05 billion, with distribution revenues of $532 million and ad revenues of $473 million. On a pro forma combined basis, excluding the impact of foreign currency fluctuations, international network revenues were up 5 percent, boosted by a 6-percent gain in distribution revenues and a 2-percent bump in ad revenues, with other revenues up 37 percent.