Discovery Q3 revenue, net income down

MUMBAI: US non-fiction media company Discovery has reported fiscal-third quarter revenue of $1,076 million, marginally down from the year-ago period, as seven per cent growth at International Networks was offset by four per cent decline at US Networks primarily due to additional revenues in the prior year from extending and expanding certain licensing agreements.

Adjusted Operating Income Before Depreciation and Amortisation (AOIBDA) grew by four per cent to $498 million, driven by an 11 per cent increase at International Networks and a two per cent increase at US Networks that included the impact of licensing agreements partially offset by higher content impairment costs in the prior year.

Third quarter net income from continuing operations available to Discovery stockholders of $214 million decreased $26 million compared to $240 million for the third quarter a year ago as the strong operating performance in the current year was more than offset by the impact of foreign currency fluctuations, increased mark-to-market equity-based compensation, other and interest expense as well as higher taxes.

Discovery president and CEO David Zaslav said, "Discovery delivered another quarter of strong operating results as a sustained focus on developing compelling content and leveraging it globally provided additional growth opportunities and continued financial momentum. In the U.S. we expanded market share, built new hits and capitalized on the ongoing strength of the ad market, while, internationally, we further leveraged the universal appeal of our programming and increased penetration of global pay-tv platforms to expand our unparalleled distribution footprint. Going forward we remain committed to thoughtfully investing in our brands and platforms while delivering sustained financial success and returning capital to our shareholders."

Free cash flow was $353 million for the third quarter, an increase of $39 million from the third quarter of 2011, as improved operating performance was partially offset by higher content investment and cash taxes. For the last twelve months, free cash flow increased by 13 per cent over the previous twelve month period.