Discovery misses Q3 numbers
Factual broadcaster Discovery Communications is downgrading its 2012 anticipated revenue numbers, with revenues and net income affected by a strengthening dollar and higher taxes on profits. On November 6th it reported worse-than-expected quarterly revenues. The broadcaster now says that this year will see total revenues of between $4.48 billion-$4.53 billion, and down from earlier guidance of $4.55 billion-$4.65 billion. Net income guidance for the full year is now in the range of $975 million-$1.02 billion.
This current quarter (to September 30th) saw flat overall revenues of $1.076 billion despite a rise of ad-income in the USA of some 7 per cent, but this was offset by a fall per cent in early trading November 6th. Revenue from its international networks grew from $363 million (last year) to $390 million, up 11 per cent.
The broadcaster’s free cash flow was $353 million for the third quarter, an increase of $39 million from the third quarter of 2011, as improved operating performance was partially offset by higher content investment and cash taxes. For the last twelve months, free cash flow increased 13 per cent over the previous twelve month period.