Discovery Revenue Rises But Advertising Falls on Foreign Exchange
February 14 2017 - 9:25AM
Dow Jones News
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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