Discovery Communications has reported the financial results for its second quarter, revealing revenue growth and a new stock repurchase program.
The results, for the quarter ending June 20, 2010, show revenues increased 11% to US$963 million and adjusted Operating Income Before Depreciation and Amortization (OIBDA) increased 18% to $455 million. A refinancing of $3 billion in debt ‘significantly strengthened our financial position,’ said Discovery Communications president and CEO David Zaslav, and ‘greatly enhanced our financial flexibility.’
Discovery’s international networks reported an increase of 15% to $306 million due to advertising and distribution revenue growth, and also saw affiliate revenue increase six percent due primarily to an increase of Latin American subscribers. The U.S. networks’ revenues also saw an increase of 10% to $620 million because of ad and distribution revenue growth. Increased pricing led to a 13% ad revenue, while distribution revenue grew by 6% from higher rates, subscriber growth and was partially offset by the absence of $6 million from the sale of 50% of Discovery Kids last year.
Because of the strong performance, Discovery will introduce a $1 billion share repurchase plan to return capital to stockholders.
‘We delivered double-digit revenue and adjusted OIBDA growth, capitalizing on the greater global demand for advertising while continuing to demonstrate the operating leverage inherent in our business model,’ summarized Zaslav. ‘At the same time we remain focused on further strengthening our global content, with increased investments in Animal Planet and ID translating into ratings and advertising growth domestically, while TLC is expanding its footprint internationally.’
For the full year outlook for 2010, Discovery Communications expects total revenue between $3,700 million and $3,775 million and Adjusted OIBDA between $1,625 million and $1,700 million.