American media giant Discovery, Inc. reported today (May 2) of a return to profit in the first-quarter of 2019 due to its Scripps Network acquisition.
Discovery’s net income for Q1 for 2019 was US$384 million – compared to a loss of US$8 million in Q1 2018 – a result of higher operating results due in large part to the integration of Scripps; and in part from income derived from equity investments. Free cash rose to US$498 million, up from US$112 million in the year-ago quarter.
With the addition of Scripps Networks’ portfolio of channels under its belt, Discovery saw its revenues surge by 49% to US$1.75 billion.
Discovery purchased Scripps Networks in March of 2018 for US$14.6 billion. The American mass media company said in July 2017 that it had reached an agreement to take over Scripps in a cash-and-stock transaction which would see the company acquire Scripps’ roster of brands, which included HGTV, TLC, Food Network and more.
“In the first quarter we delivered a solid start to 2019, as we continue to power people’s passions through our loved brands and our owned global IP in genres that nourish audiences around the world,” said David Zaslav, president and CEO for Discovery, in a statement. “We are a differentiated media company and have the right strategy, assets, brands, and management team necessary to drive additional shareholder value.”
Discovery had a busy Q1 of this year as it announced a 10-year joint content partnership with BBC which will see the UK pubcaster’s natural history and specialist factual programming presented on Discovery’s global SVOD platform that will launch in 2020. Additionally, the mass media company announced it was revamping DIY Network in 2020 as the home of a previously announced partnership with Magnolia, the lifestyle and home brand created by Chip and Joanna Gaines of HGTV’s Fixer Upper.
(With files from Barry Walsh and Daniele Alcinii)