Discovery Communications’ financial results for the second quarter of 2009 boast a sizable increase in net income for shareholders, at US $183 million compared to US$43 million for Q2 2008.
The company says the increase primarily reflects a $45 million growth in Adjusted Adjusted Operating Income Before Depreciation and Amortization (OIBDA) and a net tax gain of $46 million as a result of the sale of 50% of the Discovery Kids channel.
‘Discovery’s second quarter results demonstrate our ability to execute on our business plan and strategic initiatives in a difficult operating environment,’ said Discovery president/CEO David Zaslav in a statement. ‘We delivered 12% ratings growth across our domestic networks and increased international subscribers 11% while offsetting our continued investment in programming with reductions to the selling, general and administrative cost base. The result was demonstrable operating leverage, with Adjusted OIBDA growth of 13% despite the challenging economy and adverse foreign currency fluctuations.’
Revenues for the quarter, at US$881 million, were down slightly from same time last year, as 2% growth at the company’s U.S. Networks division was offset by a 5% decline at International Networks, resulting from foreign currency fluctuations. Within those calculations, ad revenues for the U.S. Networks division reported a 1% increase, while ad revenue for International Networks declined 13%.