Discovery FY revenue up 6%
February 27, 2020
Discovery has reported mostly positive financial results for the quarter and full year ended December 31st 2019.
David Zaslav, President and Chief Executive Officer of Discovery, commented: “2019 was a year of promises made and promises delivered. We achieved more than $3 billion (€2.74bn) of free cash flow and brought leverage down to the low end of our target range of 3-3.5x net debt to Adjusted OIBDA. Our differentiated local content strategy and global scale, coupled with our unique free cash flow conversion profile, provide distinct financial flexibility that allows us to adapt to changing media consumption habits. Our Board’s confidence in our strategic direction is highlighted by the recent authorisation to repurchase up to an additional $2 billion of our shares.”
Financial Highlights
Fourth Quarter 2019
- Total revenues increased 2 per cent to $2,874 million, or increased 4 per cent ex-FX.
– US advertising and distribution revenues increased 1 per cent and 5 per cent, respectively; and
– International advertising & distribution revenues increased 5 per cent & 10 per cent respectively, ex-FX. - Net income available to Discovery increased to $476 million and diluted EPS increased to $0.67 per share.
- Adjusted OIBDA decreased 8 per cent to $1.1 billion, or decreased 6 per cent ex-FX.
- Adjusted EPS increased to $0.98 per diluted share.
- Free cash flow increased 27 per cent to $1. 13 billion.
- The Company repurchased 12 million Series C shares for $337 million, at an average price of $29.04 per share.
Full Year 2019
- Total revenues increased 6 per cent to $11.1 billion, or increased 2 per cent on a pro forma combined ex-FX basis.
- Net income available to Discovery, Inc. increased to $2.06 billion and diluted EPS increased to $2.88 per share.
- Adjusted OIBDA increased 12 per cent to $4.67 billion, or increased 7 per cent on a pro forma combined ex-FX basis.
- Adjusted EPS increased to $3.69 per diluted share.
- Free cash flow increased 28 per cent to $3. 11 billion.
- The Company repurchased 23 million Series C shares for $637 million, at an average price of $27.49 per share.
Operational Highlights
- In 2019, HGTV and Food Network launched in more than 30 new countries and territories combined as the Company continued to execute on its strategy to grow the global reach of the Scripps Networks.
- Total share of viewing in 2019 for our top 10 international markets increased 2 per cent, on average.
- Established strong foothold across existing and new direct-to-consumer platforms in Europe, including Dplay in 10 markets, TVN Player in Poland, and Joyn in Germany.
- Discovery was the No. 1 most-watched pay TV portfolio in the US among women 25-54 and 18+ for both primetime and total day in 2019.
- TLC delivered its best year ever globally, improving both international share and viewership by 8 per cent, and in the US, TLC was the fastest growing ad-supported cable network among women 25-54 and 18-49, with its best primetime performance in 16 years.