Discovery “positioning for long-term growth”
May 6, 2020
Discovery has reported financial results for the quarter ended March 31st 2020. Total revenues decreased 1 per cent compared to the prior year quarter to $2.68 billion (€2.48bn).
David Zaslav, President and Chief Executive Officer of Discovery. said: “The world is facing an unprecedented challenge and I want to express our profound gratitude to the medical workers and front-line responders who are risking their personal safety every day during this fight with Covid-19. I am also enormously proud of Discovery’s employees who have pulled together and stepped up with resilience, heart and creativity. They continue to nourish our viewers at a time when our trusted brands and beloved personalities are a unique source of comfort and familiarity.”
“As we navigate through the remainder of 2020, our priority remains on the well-being of our employees, clients, customers, and production partners. Furthermore, we will continue to focus on maintaining a healthy balance sheet with robust liquidity and investing in our businesses to position ourselves for long-term growth amid the changes in the pay-TV landscape,” he added
First-Quarter 2020 Financial Highlights
- Total revenues decreased 1 per cent compared to the prior year quarter to $2.68 billion, and were flat ex-FX.
- US advertising revenues were unchanged and distribution revenues increased 2 per cent; and
- International advertising revenues were unchanged and distribution revenues increased 1 per cent, ex-FX.
- Net income available to Discovery was $377 million and diluted EPS was $0.55 per share.
- Total Adjusted OIBDA decreased 4 per cent to $1,113 million, or decreased 3 per cent ex-FX.
- Adjusted EPS was $0.87 per diluted share.
- Free cash flow was $230 million.
- The Company repurchased 19 million Series C shares for $523 million at an average price of $26.87 per share.
Operational Highlights
- Discovery and Amazon announced an expanded collaboration that will provide a complimentary one-year subscription to Food Network Kitchen to all Amazon Fire TV and Fire Tablet customers in the US.
- Total share of viewing across the international portfolio in the first quarter of 2020 increased 4 per cent on average.
- Discovery was the most-watched pay-TV portfolio in the US among P2+ audiences in the first quarter of 2020, while in primetime, Discovery was the most-watched pay-TV portfolio among key demos.
- TLC was the No. 1 cable network among women 25-54, 18-49, and 18-34, and delivered its best primetime performance ever among women 25-54 and its best in 17 years among P25-54. March 2020 marked 11 consecutive months of year-over-year primetime growth for TLC among women 25-54.