Discovery reveals $1.65BN in revs for Q2


Michelle Clancy

| 06 August 2015

Discovery Communications has reported second quarter revenue of $1.654 billion, up $44 million, or 3%, over the second quarter a year ago, led by 5% growth at US networks and 1% growth at international networks.

"Driven by our unmatched portfolio and steady growth around the world, Discovery's strong start to the year continued in the second quarter," said Discovery Communications president and CEO David Zaslav. "We have carried that momentum into the third quarter and signed three landmark deals - the historic agreement for the Olympic Games in Europe, our agreement to acquire full ownership of Eurosport and our comprehensive long-term renewal with Comcast - that will bolster Discovery's position and market share for years to come."

Second quarter net income decreased to $286 million ($0.44 per diluted share) compared to $379 million ($0.54 per diluted share) for the second quarter a year ago, primarily due to higher foreign currency losses, a lower gain on disposition, a gain on the consolidation of Eurosport in the prior year, and higher restructuring and other charges due to content impairments, partially offset by lower income tax expense.

"I am pleased with the progress we made in the first half of the year and look forward to building our stable of content, IP and world-class platforms to drive viewer engagement and meaningful value to distributors, advertisers and shareholders now and into the future," Zaslav said.

Free cash flow increased 55% to $313 million for the second quarter due to lower cash taxes, timing of changes in working capital, lower cash interest payments and lower capital expenditures.