Revenues Rise, Profit Drops at Discovery

Third-quarter revenues at Discovery, Inc. rose by 23 percent to $3.15 billion, while net profit at the company dropped by 48 percent to $156 million.

“We made great strides in the quarter operationally, financially and creatively,” said David Zaslav, president and CEO. “The team drove solid momentum in our direct-to-consumer business, which we grew to 20 million paid subscribers at quarter-end on the strength of our global brands and fan-favorite content, including the Summer Olympic Games and Shark Week. Additionally, we delivered double-digit growth in both advertising and distribution revenues, as we doubled next-generation revenues year over year. This strong performance once again drove very healthy cash flows during the quarter, further strengthening our balance sheet and financial profile. We are very excited about our pending merger with WarnerMedia and the opportunity to bring these two companies together, combining iconic and globally cherished franchises and brands, and positioning us to more efficiently drive global scale across the combined portfolio.”

U.S. revenues were up 12 percent to $1.86 billion, with ad revenues up 5 percent to $991 million and distribution up 21 percent to $841 million, driven by discovery+.

At the international networks, revenues were up 44 percent to $1.3 billion, with ad revenues rising 28 percent to $467 million and distribution revenues up 7 percent to $538 million.

At the end of Q3, Discovery had 20 million direct-to-consumer subs, a 3 million gain on the previous quarter.