TV

International ad sales boost Discovery’s Q2 revenue

Discovery Communications reported a 10% rise in second-quarter revenue thanks largely to 23% growth in ad sales at its international networks. (Pictured: president and CEO David Zaslav)
July 31, 2014

Discovery Communications reported a 10% rise in second-quarter revenue thanks to 23% growth in ad sales at its international networks, as well as a 19% jump in distribution revenue.

The cable giant’s U.S. networks revenue declined by 2% due to licensing agreements impacting distribution, although ad sales were up 5% mainly due to higher prices.

Other revenues declined due to a decrease in content production contracts. Excluding the impact of licensing agreements, distribution was up 6% and total revenues grew 4% compared with the second quarter last year.

Total revenue increased by $143 million to US$1.61 billion, up from $1.47 billion in the same period last year.

Net income rose 26% to $379 million, up from $300 million last year. Discovery now expects full-year revenue to land between $6.45 billion and $6.525 billion.

“Investing in compelling programming remains a priority as we integrate our recent acquisitions and build new avenues of growth so we can deliver additional long-term value to our shareholders,” said Discovery’s president and CEO, David Zaslav (pictured above), in a statement.

Discovery’s channel brands include Discovery Channel, TLC, Science, ID: Investigation Discovery, Animal Planet and OWN.

Earlier this year, the company finalized a deal for its controlling interest in sports net Eurosport; acquired two pay-TV lifestyle channels in New Zealand; teamed with Liberty Global to buy All3Media in a deal worth $930 million; and took over Gold Rush producer Raw TV.

About The Author
Meagan Kashty is an associate editor of realscreen, an international print and online magazine that covers the non-fiction film and television industries. Meagan is an award-winning business journalist. Prior to joining the realscreen team, Meagan was online editor of Canadian Grocer, named Magazine of the Year at the 2015 Canadian Business Media Awards. She can be reached at mkashty@brunico.com, and you can follow her on Twitter @MegKashty

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