On Friday, newly public company Discovery Communications Inc., revealed its financial results of the third quarter which ended on September 30, 2008.
One of the main findings revealed that although these are tough economic times, Discovery is so far exceeding financially. The company’s total revenues increased 11% to US$845 million in the third quarter, the adjusted OIBDA (operating income before depreciation and amortization) went up to $311 million, the net income from continuing operations increased to $94 million and finally, the Free Cash Flow grew to $200 million.
Senior VP of investor relations, Craig Felenstein, reported that Discovery is ‘encouraged by the performance of our networks during October with an increase of premiere hours at Discovery, and the taking over of TLC by Eileen O’Neill.’
David Zaslav, CEO of Discovery, credited the strength of the third quarter results to Discovery brand’s portfolio, the consistency of performance from multiple revenue streams, and Discovery’s global reach.
Zaslav also outlined the five-pronged approach to growing the company:
1) Creating quality programming with global utility
2) Focusing on international opportunities and growth
3) Investing in Discovery’s merging network brands, which Zaslav called ‘beachfront real estate’
4) Building the digital media platform and Discovery’s brand entitlement
5) Improving operating efficiencies and margins
Regarding the international opportunities, Zaslav said, ‘Many media companies talk about making money internationally, Discovery is executing, delivering well over $300 million dollars in adjusted OIBDA across outside of the US.’
He also credited Discovery’s non-fiction content’s versatility as the cablecaster’s biggest strength. The portfolio of channels manages to appeal to a broad range of demos, and he stressed, is not about quick ratings or temporary fixes.