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
Daniele Alcinii is a news reporter at realscreen, the leading international publisher of non-fiction film and television industry news and content. He joins the rs team with journalism experience following a stint out west with Sun Media in Edmonton's Capital Region, and communications work in Melbourne, Australia and Toronto. You can follow him on Twitter at @danielealcinii.

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