DISCOVERY REVENUE SPIKES BY 15% DURING THIRD QUARTER

Discovery’s International Networks had revenues of USD 902 million in the third quarter, down 5% from the same period last year. “Discovery delivered improving financial results in the third quarter, a testament to the powerful appeal of our content and brands, led in the US. by TLC, which beat top-rated sports and news networks in coveted Primetime demos, even in a record year for cable news,” David Zaslav, President and CEO, Discovery, said.

Advertising decreased by 7% down year-on-year at USD 365 million, while distribution dropped 3% lower at USD 503 million. Adjusted OIBDA was USD 127 million, a 46% decline during Q3 2019. Discovery’s total US revenues, however, stood at USD 1,659 million, at -4%, with advertising accounting for USD 941 million, at -8% and distribution USD 696 million at a +2%. The conglomerate's adjusted OIBDA stood at USD 951 million at a -5%. Total revenues dropped by 4% as ad sales decreased by -8% in the U.S. and -9% worldwide. The figure reflects more than U.S. distribution rose (+2%). Abroad, distribution revenue declined by 4%. Stateside, Discovery’s portfolio lost 6% of the subscribers it had at this time last year. Discovery stock (DISCA) closed Wednesday at USD 20.53 per share.

Net income for the quarter was USD 300 million, up 15% from the comparable quarter last year. On a per-share basis, however, those adjusted earnings decreased by 7%. Wall Street had forecast earnings of 65 cents per share on $2.49 billion in revenue, according to a Yahoo Finance compilation of estimates. On Thursday morning, Discovery reported Q3 adjusted EPS (earnings per share) of 81 cents on $2.561 billion in revenue. In its latest set off results, Discovery notes that the total share of viewing across its international portfolio in the third quarter of 2020 improved 5% on average, with strong growth in the UK, Germany, Italy, and Norway. Additionally, Q3 marked five consecutive quarters of year-over-year share improvement”.

According to Zaslav, the “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,” Zaslav said.