Discovery delivers solid first quarter
Details
Joseph O'Halloran
| 02 May 2019

It was a case of home sweet home for content giant Discovery as growing US business offset falls in global during the first quarter of 2019.

For the three-month period ended 31 March 2019, the company reported revenues of $2.707 billion increasing 17% on a reported basis compared with the prior year's quarter. Excluding the impact of foreign currency fluctuations, revenues increased 21%.

On a pro forma combined basis, excluding the impact of foreign currency fluctuations, total company revenues decreased 5%, as a 3% increase in US Networks was offset by a 15% decrease in the company’s International Networks primarily due to revenues from the Olympics in the first quarter of 2018 and the sale of the firm’s education business.

First quarter net income was $384 million, compared with a loss of $8 million in the prior year's quarter. The improvement in net income was a result of higher operating results primarily driven by the integration of Scripps Networks and to a lesser extent income from equity investments versus a loss in the first quarter of 2018, partially offset by higher tax expenses versus a tax benefit in the first quarter of 2018.

Operational highlights during the quarter included Discovery UK posting its strongest-ever quarterly ratings; a 10-year global partnership with the BBC for factual SVOD content as well as a resolution of the UKTV joint venture; delivering the top-four cable networks for women 25-54 in the US with ID, HGTV, Food Network and TLC; securing a new distribution agreement in the US with YouTube TV, adding to broad inclusion across virtual MVPD services.

“In the first quarter we delivered a solid start to 2019, as we continue to power people's passions through our loved brands and our owned global IP in genres that nourish audiences around the world,” said Discovery president and chief executive officer David Zaslav commenting on the results. “We are a differentiated media company and have the right strategy, assets, brands, and management team necessary to drive additional shareholder value.”