Discovery Communications’ Q3 Profit Rises

SILVER SPRING: Discovery Communications reported a 10 percent increase in profit for the third quarter, lifted by strong revenue growth at its international networks.

Net income for Q3 was $280 million, up 10 percent on the third quarter a year ago. Revenue gained 14 percent to $1.6 billion, with 32 percent growth at the international networks partially offset by a 1 percent decline at the U.S. networks. OIBDA increased 8 percent to $634 million, with international networks up 25 percent but U.S. networks flat due to the impact of licensing agreements.

At the U.S. networks, revenues were down by 1 percent to $724 million, with advertising growth more than offset by a decline in distribution and other revenue. Ad revenues grew 1 percent, mainly due to higher pricing and volume being offset by lower delivery. Distribution revenues were down 3 percent, while other revenues declined $3 million, due to a decrease in content production contracts and representation fees.

International networks saw revenue gains of 32 percent to $818 million, with distribution revenues up 34 percent and ad revenues up 20 percent. Other revenues were up 219 percent.

For the full year, Discovery expects total revenue between $6.3 billion and $6.35 billion, and net income between $1.15 billion and $1.175 billion.

"Discovery’s strong global organic growth and reach coupled with increasing contributions from our recent strategic acquisitions led to another quarter of solid results,” said David Zaslav, the president and CEO of Discovery Communications. “Our expansive content portfolio drove audience gains and boosted our market share around the world as we continued to benefit from the ongoing development of the global pay-TV market. Going forward, we remain committed to investing in world-class content, building the next generation of businesses and brands and leveraging our diversified and well-positioned worldwide assets to deliver consistent operational and financial results and long-term shareholder value."