American media conglomerate Discovery Inc.’s profits edged higher in the second quarter with the company reporting revenues upwards of US$2.89 billion, largely marked by gains in U.S. networks, distribution and advertising revenue, as well as the influx of a $455 million tax benefit.
Net income for the quarter landed at $947 million, or $1.33 per diluted share, compared to $216 million in the prior year’s quarter and up from $384 million in Q1.
Discovery attributed the earnings to the tax benefit, which it received after restructuring several jurisdictions within its international networks segment.
Revenues inched up 1% compared to the prior year’s quarter. A 5% jump in U.S. networks revenue to $1.86 billion was partially offset by a 3% decrease in international networks and an 86% decrease in other revenues due to the sale of Discovery’s education business.
The company also enjoyed a 5% bump in U.S. distribution revenue to $688 million. Advertising revenue increased 6% to $1.15 billion.
Discovery launched nine additional networks on YouTube TV and in the U.S. and signed a multi-year live and on demand carriage agreement with fuboTV in the second quarter. It also completed the UKTV Lifestyle Business joint venture unwind transaction, in which the company took full control of lifestyle channels Really, Home and Good Food.
Its U.S. networks portfolio, comprising HGTV, Food Network, TLC, Investigation Discovery, and OWN Drive, became the most watched for women between the ages of 25 and 54, spiking the group’s share to 16%, Discovery stated in an Aug. 5 release.
“We delivered another quarter of strong operating and financial performance, with the benefits of the Scripps Networks acquisition flowing through all areas of our global business, while also accelerating our pivot to digital and direct-to-consumer offerings with IP that powers people’s passions,” Discovery president and CEO David Zaslav (pictured) said in a statement. “With an exceptional team in place, strong top-line performance and a healthy balance sheet, we are confident in our ability to continue executing on our strategic priorities to drive long-term growth and shareholder value.”