Discovery Communications has reported a revenue increase for the third-quarter of 2017, while its net income remained mostly unchanged from 2o16.
Discovery reported a revenue increase of 6% compared to the year prior to US$1.65 billion, due to 11% growth at international networks and 4% growth at U.S. networks.
“Advertising and global distribution revenue growth helped to drive solid third-quarter results for Discovery,” said David Zaslav (pictured), president and CEO, Discovery Communications, in a statement.
Discovery’s net income was $218 million, a number consistent with last year’s. Improved operations results and a tax benefit in the third quarter were offset by $142 million after-tax Scripps transaction-related costs.
In July 2017 Discovery Communications announced its intentions to acquire Scripps Neteworks for US$14.6 billion in a cash and stock transaction. The deal is expected to close in early 2018. Scripps operates HGTV, Travel Channel and Food Network, while Discovery’s networks include Discovery Channel, TLC, OWN and Science Channel.
The company’s adjusted earnings per share rose 8% to $0.43 for the third quarter.
U.S. networks’ earnings for the third quarter increased 4% to $823 million, driven by 6% distribution growth and 3% advertising growth but subscribers declined 5% in the quarter – while subscribers to the company’s fully distributed networks declined 3%.
And Discovery’s international networks’ revenues for the third quarter increased 11% to $796 million and adjusted operating income before depreciation and amortization (OIBDA) of $180 million was consistent with the prior year.
Zaslav added “We continued to focus on investments to strengthen our worldwide IP portfolio as well as strategic partnerships to nourish global superfans across every screen, platform and service. Additionally, we are excited by the prospects for a combined Discovery and Scripps as we continue to make progress on the transaction to create a global leader in real life entertainment.”