Discovery, the multichannel broadcaster, has reported financial results for the quarter ended September 30th.
David Zaslav, President and CEO of Discovery, commented: “We made great strides in the quarter operationally, financially and creatively. The team drove solid momentum in our direct-to-consumer business, which we grew to 20 million paid subscribers at quarter end on the strength of our global brands and fan-favourite content, including the Summer Olympic Games and Shark Week. Additionally, we delivered double-digit growth in both advertising and distribution revenues, as we doubled next generation revenues year over year.”
“This strong performance once again drove very healthy cash flows during the quarter, further strengthening our balance sheet and financial profile. We are very excited about our pending merger with WarnerMedia and the opportunity to bring these two companies together, combining iconic and globally cherished franchises and brands, and positioning us to more efficiently drive global scale across the combined portfolio,” added Zaslav.
Third-Quarter 2021 Financial Highlights
• Total revenues of $3.1 billion (€2.6bn) increased 23 per cent, as reported and ex-FX, compared to the prior year quarter.
– US advertising revenues increased 5 per cent and distribution revenues increased 21 per cent; and
– International advertising revenues increased 28 per cent, or 26 per cent ex-FX, and distribution revenues increased 7 per cent, or 6 per cent ex-FX.
• Net income available to Discovery was $156 million and diluted earnings per share was $0.24.
• Total Adjusted OIBDA was $726 million.
• Cash provided by operating activities was $811 million and free cash flow was $705 million.
• Ended Q3 with 20 million DTC Subscribers, an increase of 3 million subscribers since the end of Q2.
• Generated $425 million of Next Generation Revenues, growth of approximately 100 per cent versus the prior year quarter.
• Recently launched discovery+ in Canada and the Philippines
• Finalised multi-year US distribution agreements with DirecTV and Verizon.
• Successfully broadcast the Tokyo 2020 Summer Olympic Games, which reached over 372 million people in Europe across TV and digital platforms, and delivered 1.3 billion minutes of Olympics content on our streaming services.