Q3 Profit Up 15 Percent at Discovery

While total revenues slipped by 4 percent to $2.6 billion in the third quarter at Discovery, Inc., net income rose by 15 percent to $300 million.

“Discovery delivered improving financial results in the third quarter, a testament to the powerful appeal of our content and brands, led in the U.S. by TLC, which beat top-rated sports and news networks in coveted prime-time demos, even in a record year for cable news,” said David Zaslav, president and CEO. “And as promised, our healthy liquidity position and another robust quarter of free cash flow generation allowed us to return $228 million to shareholders through share repurchases. In the midst of macroeconomic uncertainty with the ongoing COVID pandemic, as well as the continuing evolution of our industry, we remain focused on positioning Discovery for long-term growth and shareholder value creation through the execution of our strategic priorities,
including our next-generation initiatives.”

At the U.S. networks, revenues fell by 4 percent to $1.66 billion, with ad revenues down 8 percent to $941 million and distribution revenues up by 2 percent to $696 million. As at the end of Q3, Discovery’s total portfolio subscribers were 6 percent lower than at September 30, 2019.

At the international networks, revenues fell by 5 percent to $902 million. Advertising revenues fell to $365 million, while distribution revenues slipped to $503 million.