Dollar Pushes Discovery Net Down in Q2

Revenue Up 4%, U.S. Ad Sales Flat
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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.

Read more at broadcastingcable.com.

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