Discovery disappoints
February 14, 2013
Discovery said that fourth quarter net income declined to $224 million, where analysts were expecting $336 million a year ago.
The company attributed the drop in income to higher taxes, equity-based compensation and costs due to its acquisition of Germany’s ProSiebenSat.1 Media AG’s 12 Nordic television stations for $1.7 billion.
Still, Discovery, whose cable networks include Discovery Channel, TLC and Animal Planet, said total revenue rose 8 per cent to $1.2 billion, in line with expectations.
Advertising revenue at the company’s US channels rose 9 per cent to $397 million, while at its international cable networks it rose 16 per cent to $185 million.