MUMBAI: Global media firm Discovery Communications has announced its results for 2005. DCI's revenue for the fourth quarter increased by 11 per cent to $772 million and 13 per cent in 2005 to $2.7 billion. DCI's operating cash flow increased by one per cent in the quarter to $184 million and four per cent in 2005 to $687 million.
In the US, its revenue increased by eight per cent in the quarter to $444 million and nine per cent in 2005 to $1.7 billion. Operating cash flow increased by six per cent in the quarter to $148 million and eight per cent in the year to $643 million. The growth in revenue was due to increases in distribution revenue for both periods combined with a five per cent decrease in ad revenue in the quarter and flat ad revenue for the year.
Net distribution revenue increased by 24 per cent in the quarter and 22 per cent for 2005 as the US networks had a 10 per cent increase in paying subscribers in 2005 combined with contractual rate increases. Operating expenses increased by eight per cent in the quarter and 10 per cent in the year due to an increase in programming expense as the company continued its investment across all US networks in original productions and series and specials.
Internationally, its revenue increased by 25 per cent in the quarter to $214 million and by 24 per cent in the year to $731 million. Operating cash flow increased by 27 per cent in the quarter to $33 million and 10 per cent for the year to $109 million. The increases in revenue were due to growth in distribution and advertising revenue. Net advertising revenue increased by 26 per cent in the quarter and 28 per cent in the year primarily due to higher viewership in the UK and an increased subscriber base in the UK and Europe.
Net distribution revenue increased by 29 per cent in the quarter and 25 per cent in the year due to increases in paying subscription units in Europe and Asia combined with contractual rate increases in certain markets. Operating expenses increased by 25 per cent in the quarter and 27 per cent for 2005 due to an investment in the lifestyles category designed to develop and grow that market opportunity combined with an expected increase in headcount as the business expands.
