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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.

About Mansha Daswani

Mansha Daswani is the editor and associate publisher of World Screen. She can be reached on mdaswani@worldscreen.com.


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