Discovery reports healthy Q1 growth
DetailsMichelle Clancy | 06 May 2015
On the back of its international division showing solid audience growth, content giant Discovery Communications reported that revenues increased 9% to $1,537 million in the first quarter of 2015.
Net income was $250 million ($0.37 per diluted share), which increased $20 million, or 9%, compared to $230 million a year ago. Adjusted OIBDA increased 8% to $568 million, and adjusted earnings per diluted share increased 11% to $0.42.
"2015 is off to a great start, as our strategy of investing in and owning world-class content to leverage across our unparalleled global distribution platform continues to drive operating momentum and strong financial results," said David Zaslav, president and CEO of Discovery Communications. "Despite facing a challenging US marketplace and foreign currency headwinds, Discovery is successfully building market share, expanding our distribution and developing programming that resonates with audiences around the world. I'm extremely pleased with our strong performance this quarter and the numerous opportunities Discovery has in the months and years ahead."
First quarter revenues were led by 10% growth at international networks and 6% growth at US networks. The company earlier reported that its international division had a strong start of the year with the average audience of its global portfolio up 10% year-on-year. It closed the first quarter of 2015 with 650 million viewers across its portfolio of networks, adding 3.6 million viewers in the three-month period. The company's combined free-to-air portfolio delivered 673,000 viewers on average, a rise of 7% compared with the same quarter in 2014.
Free cash flow decreased to $29 million for the first quarter, as improved operating performance and a decrease in stock-based compensation was more than offset by the timing of tax payments and higher content payments.