Discovery Communications’ net income for the fourth quarter of 2014 fell by 13% over the year prior, in part due to higher restructuring costs.
Fourth quarter net income came in at US$250 million, from $289 million from the same period in the year prior. The company attributed the decline to higher restructuring costs and lower equity earnings in the quarter.
Meanwhile, revenues for the fourth quarter increased by $139 million to $1.68 billion, an increase of 9% from the year prior, due primarily to 17% growth from the International Networks division, and with the U.S. Networks division posting 1% growth. Adjusted OIBDA decreased by $25 million, to $638 million, as 11% growth from International Networks was offset by a 7% decline at U.S. Networks.
Drilling down further to fourth quarter results for U.S. Networks, the company posted a decline in advertising revenues of 3% due to “lower delivery and lower demand,” while distribution revenues increased by 8% due to higher rates, and the consolidation of Discovery Family in Q4 2014, partially offset by additional revenues from licensing agreements in the fourth quarter of 2013.
Full year results saw revenue for the Silver Spring-headquartered media company rise by 13% over 2013, to US$6.2 billion, with International Networks up 28%, and U.S. Networks flat, which the company attributed to additional revenues from licensing agreements in the prior year.
“The healthy performance of our core business coupled with increasing contributions from our recent strategic acquisitions led to another year of solid operational and financial results and increasing capital returns in 2014,” said David Zaslav, president and chief executive officer of Discovery Communications, in a statement.
“Despite a more challenging U.S market and significant foreign currency headwinds, our content portfolio once again drove audience gains and boosted our market share around the world,” he added. “As we move into 2015, we are confident that our long-term content investment strategy, strong global IP and brands, and local approach to markets will continue to drive our results and enable us to deliver additional value to shareholders.”