Discovery Communications reported lower second-quarter profits as the strong dollar hurt its international businesses and domestic ad revenue was flat.
Net income fell 25% to $286 million, or 44 cents a share, from $379 million, or 54 cents a share. The company attributed the decline in part to the strong dollar and charges caused by restructuring and content impairments.
Revenue rose 4% to $1.7 billion. Discovery said revenue would have been up 11% excluding currency effects. Domestic ad revenue was unchanged.
The earnings were a bit below Wall Street estimates, but revenue was in line with expectations.
Adjusted operating income for Discovery’s U.S. Networks was up 7% to $496 million. Revenues rose 5% to $814 million.
Domestic ad revenue was $447 million, essentially the same as last year’s $446 million. The company said higher pricing was offset by lower ratings. Domestic distribution revenue was up 12% to $357 million.
Operating income for Discovery’s international networks was down 11% to $266 million.
“Driven by our unmatched portfolio and steady growth around the world, Discovery’s strong start to the year continued in the second quarter,” CEO David Zaslav said.
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