Discovery “another solid quarter”

Discovery Communications has reported financial results for the third quarter ended September 30th 2014.

Q3 revenues of $1,568 million increased $193 million, or 14, over the third quarter a year ago, as 32 per cent growth at International Networks was partially offset by a 1 per cent decline at US Networks, primarily due to additional revenues from licensing agreements in the prior year.

Third quarter net income available to Discovery Communications of $280 million ($0.41 per diluted share) increased $25 million, or 10 per cent, compared to $255 million ($0.35 per diluted share) for the third quarter a year ago, primarily due to improved operating performance in the current quarter, as well as an increase in equity earnings and lower mark-to-market equity-based compensation, partially offset by higher restructuring costs this quarter and a gain on disposition in the prior year’s quarter.

Free cash flow was $393 million for the third quarter, down 10 per cent from the third quarter of 2013, as the improved operating performance was more than offset by higher tax payments as well as higher content payments. Free cash flow is defined as cash provided by operating activities less purchases of property and equipment.

“Discovery’s strong global organic growth and reach coupled with increasing contributions from our recent strategic acquisitions led to another quarter of solid results,” said David Zaslav, President and Chief Executive Officer, Discovery Communications. “Our expansive content portfolio drove audience gains and boosted our market share around the world as we continued to benefit from the ongoing development of the global pay-TV market. Going forward, we remain committed to investing in world-class content, building the next generation of businesses and brands and leveraging our diversified and well-positioned worldwide assets to deliver consistent operational and financial results and long-term shareholder value.”

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