Discovery Q3 flat
November 3, 2015
Discovery Communications has reported financial results for the third quarter ended September 30th.“Discovery’s unique portfolio of assets and global brands drove yet another quarter of strong worldwide viewership and financial results,” commented David Zaslav, President and CEO of Discovery Communications. “Discovery is like no other media company, propelled by our unmatched global infrastructure, local leadership, efficient global content model and sturdy position in the US, and we are confident in our ability to drive near and long-term growth and shareholder value.”Third quarter revenues of $1,557 million decreased 1 per cent compared to the third quarter a year ago, as 8 per cent growth at US Networks was more than offset by a 9 per cent decline at International Networks, primarily due to currency effects. Adjusted Operating Income Before Depreciation and Amortisation (“OIBDA”) decreased 9 per cent to $576 million, as 4 per cent growth at US Networks was more than offset by a 21 per cent decline at International Networks, primarily due to currency effects, and a small operating loss at Education and Other. Total Company revenues grew 8 per cent and Adjusted OIBDA declined 1 per cent excluding currency effects, as changes in foreign currency exchange rates reduced third quarter revenue and Adjusted OIBDA growth by 9 per cent and 8 per cent, respectively. Excluding currency effects and the impact of the Eurosport acquisition, the SBS Radio disposition, and the consolidation of Discovery Family, total Company revenues increased 7 per cent and Adjusted OIBDA decreased 1 per cent.
Third quarter net income available to Discovery Communications was relatively flat at $279 million ($0.43 per diluted share) compared to $280 million ($0.41 per diluted share) for the third quarter a year ago, primarily due to a net loss from equity investees, mostly offset by lower income tax expense. Adjusted Earnings Per Diluted Share (“Adjusted EPS”), which excludes the impact of amortization of acquisition-related intangible assets, was $0.47 in the third quarter of this year, up 2 per cent, compared to $0.46 in the same period a year ago. Adjusted EPS increased 25 per cent excluding currency effects, as changes in foreign currency exchange rates reduced third quarter Adjusted EPS by 23 per cent. For the last twelve months, Adjusted EPS excluding currency effects was up 11 per cent compared to the prior twelve month period.Free cash flow decreased to $234 million for the third quarter, primarily due to the timing of changes in working capital and higher content spend. Free cash flow is defined as cash provided by operating activities less purchases of property and equipment.