Discovery Communications stocks soared more than 10% Friday after reporting strong third quarter results fueled by growth at its international channels.
Revenue for the period was up 11% to $845 million and adjusted operating income before depreciation and amortization rose 23% to $311 million. Fueling that growth was a 6% rise in revenue at its U.S. networks and a 16% rise at its international channels.
Discovery shares were up nearly 14% ($1.68 per share) to $13.77 each in afternoon trading Friday.
Adjusted OIBDA rose 9% at the U.S. networks and 58% at the international channels. Domestic ad revenue was up 5% in the period to $249 million, reflecting stronger scatter market pricing and offset by weaker ratings at its TLC and Discovery Channel networks. International ad revenue was flat at $83 million.
In a conference call with analysts, its first since becoming a fully public company in September, CEO David Zaslav said that the domestic and international advertising markets continue to appear strong.
“The value of cable versus the broadcasters only continues to increase,” Zaslav said, adding that scatter market pricing remains above the upfront and the year-ago period. “We still expect advertising revenue growth in Q4.”
However, Zaslav said that the scatter market is beginning to show signs of slowing.