Digital Drives Discovery Results

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Discovery Holding Company said it saw revenue at its U.S. Networks division rise 3% during the third quarter to $475 million, attributing the increase in part to growth in distribution of its digital cable networks.

Discovery Holding, which owns 100% of Ascent Media Group and more than 66% of Discovery Communications, said consolidated revenue in the third quarter increased 6% to $745 million and operating cash flow increased 13% to $231 million.

Net advertising revenue at its U.S. networks increased 19% during the quarter, primarily due to higher advertising sell-out rates, improved unit pricing and higher audience delivery on most channels, notably Discovery Channel and TLC, Discovery said.

Discovery also said that distribution revenue increased 3%, primarily due to a 4% increase in average paying subscription units, principally from networks that are carried on the digital tier.

Revenue at Discovery’s international networks increased 11% to $259 million and operating cash flow increased 8% to $41 million. Discovery attributed the increase in revenue to growth in both advertising and distribution revenue as well as favorable foreign currency exchange rates.

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