Discovery sees 15% profit spike for 2016
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Michelle Clancy
| 15 February 2017

Discovery Communications’ profit increased 15% to $1.194 billion for 2016, on full-year revenues of $6.5 billion.

“Discovery’s diversified set of non-fiction, sports and kids’ entertainment brands, and strong strategic positioning continued to drive attractive distribution agreements, helping to deliver solid operating and financial results in 2016,” said David Zaslav, president and CEO, Discovery. “As we begin 2017, we will continue to invest in our premier global IP and brands to nourish fans across all screens, all platforms and all services to drive shareholder value and propel our business for years to come amid the rapidly changing media landscape.”

Revenue increased 2% compared to the prior year, as 5% growth at US networks and 1% growth at education and other were partially offset by a 2% decline at international networks, primarily due to the sale of SBS Radio and currency effects. The net income spike was primarily due to higher operating results, currency-related transactional gains, a $31 million (or $0.05 per share) after-tax gain from the Group Nine transaction, and a decrease in taxes, partially offset by a $59 million (or $0.10 per share) after-tax impairment charge related to the Lionsgate investment, losses from equity investees and higher equity-based compensation.

For the fourth quarter alone, the content giant saw revenues of $1.7 billion, an increase of 2% compared to the prior year, as 3% growth at US networks and slight growth at international networks were partially offset by a slight decline at education and other.