DISCB Discovery Inc

By Austen Hufford 

Discovery Communications Inc.'s posted revenue and profit growth even as advertising fell due to continuing foreign-exchange headwinds.

Media companies have been looking outside the nation's conventional cable networks for growth. The company said it had a slight decline in U.S. subscribers in its most recent quarter.

Discovery, whose assets include its namesake station in addition to Animal Planet and TLC, has been expanding overseas aggressively in recent years. It operates foreign-language channels including Giallo and Familia, and in 2014, took a controlling stake in the pan-European sports-network group Eurosport. It has since signed dozens of sports rights deals, from Wimbledon in Belgium to Formula One in Portugal, helping to boost ratings. During the quarter, it gained subscribers in Latin America and had higher affiliate rates in Latin America and Europe.

With a larger slice of revenue coming from abroad, Discovery has had to contend with a stronger U.S. dollar.

During the quarter ending in December, international networks' revenue grew 0.4%, with currency fluctuations reducing growth by 5%. Domestic revenue grew 3.2%. Distribution revenue rose 4.5% to $793 million, while advertising revenue slipped 0.5% to $800 million.

In all, Discovery reported a profit of $304 million, or 52 cents a share, up from $219 million, or 34 cents, a year prior. On an adjusted basis, earnings per share were 56 cents.

Total revenue rose 1.6% to $1.67 billion.

Analysts polled by Thomson Reuters had expected revenue of $1.69 billion and adjusted earnings per share of 47 cents.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

February 14, 2017 09:10 ET (14:10 GMT)

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