Improved Advertising Sales Help Discovery Earnings4/28/2011 9:44 AM Eastern
Discovery Communications said its profits rose as the media and advertising business continued its recovery.
Net income rose 80% to $305 million, or 74 cents a share, from $169 million, or 39 cents a share. The earnings include a $102 million gain from contributing its Discovery Health network to the Oprah Winfrey Network joint venture. Without one-time gains, earnings were up 20%.
Revenues, bolstered by double-digit advertising sales gains, rose 9% to $951 million.
Adjusted operating income rose 14% to $334 million at Discovery's U.S. networks and 18% to $144 million at its international networks.
At Discovery's U.S. networks, revenues were up 8% to $587 million, with ad revenues ahead 9% to $290 million and distribution revenues up 6% to $274 million. Revenues at the international networks were up 14% to $323 million.
The company said that the advertising revenue gains reflected increased prices and higher sellouts, but were offset by $14 million in revenues from Discovery Health, now a part of the OWN joint venture.
Excluding Discovery Health from the 2010 results, ad revenues grew 15% in the first quarter, distribution revenues were up 7%.