Discovery sees stronger Q2 with increased revenue, profit
U.S. broadcaster Discovery Communications has posted second quarter 2012 results showing revenues up by US$1.1 million and net income increasing 15%.
The numbers mark an improved quarter compared to the Q1 results reported in May, which saw a decline in net income owing to OWN: Oprah Winfrey Network’s net losses.
Year-on-year Discovery posted a revenue increase of 7% over the second quarter of 2011, with 6% growth at the U.S. networks division and 10% growth at international networks, while net income increased 15% to $293 million. The adjusted pre-tax operating income (OIBDA) increased 6% to $543 million.
The U.S. networks, which include Discovery Channel, TLC and Science Channel, saw revenue increases driven by advertising and distribution revenue growth.
Discovery’s international networks saw larger profits due to distribution revenue, mainly from increased subscribers in Latin America and CEEMEA, and advertising, from new and rebranded networks, as well as higher pricing across most regions.
The report also mentions Betty, the production company that Discovery Communications acquired in Q4 2011. Discovery cites “other revenue” as being $4 million higher, primarily due to revenue from the prodco.
“The steps we have taken to broaden our international content offerings, along with the continued evolution of pay-TV globally, are driving international expansion, while domestically we are generating significant returns from the sustained programming initiatives and audience growth across our younger networks,” said David Zaslav, Discovery Communications’ president and CEO.
“Our financial momentum and strong balance sheet have enabled us to accelerate the pace of our capital returns as we continue to invest in both new and existing strategic growth initiatives to further build shareholder value.”