US increases offset global declines in steady Q2 for Discovery
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Joseph O'Halloran
| 06 August 2019

On the heels of announcing solid growth in viewership among its estate, content giant Discovery has posted a diverse set of results for its second quarter of 2019 with revenue inching up year-on-year yet with profits substantially up.

For the three-month period ended 30 June 2019, the company overall revenues of $2.885 billion, an increase of 1% compared with the prior year. Drilling down revealed a clear indication as to where the company’s strengths resided with a 5% increase in US networks revenues partially offset by a 3% decrease in international networks’ revenues. There was also a significant decrease in Other revenues due to the sale of the education business. Excluding the impact of foreign currency fluctuations, total revenues in the quarter increased 4% on an annual basis and international networks’ revenues increased 3%.

Second quarter net income available was $947 million, compared with $216 million in the same quarter of 2018. Discovery attributed the increase in net income to higher operating results and a one-time, non-cash tax benefit recognised in the quarter. The company carried out a number of internal restructurings across several territories within the international networks segment and the net effect of these restructuring activities was a one-time, non-cash income tax benefit of $455 million from the recognition of a deferred tax asset.

Among the highlights noted by the company for the quarter were achieving the position of number one media company for female viewers in the US, according to Nielsen data, and the launch of nine additional networks on YouTube TV in the Us and the signing of a multi-year live and on-demand carriage agreement with fuboTV. The company also completed the UKTV lifestyle business joint venture unwind transaction in which the company formally received control of lifestyle channels Really, Home and Good Food.

“We delivered another quarter of strong operating and financial performance, with the benefits of the Scripps Networks acquisition flowing through all areas of our global business, while also accelerating our pivot to digital and direct-to-consumer offerings with IP that powers people's passions,” said Discovery president and chief executive officer David Zaslav commenting on the Q2 results. “With an exceptional team in place, strong top-line performance and a healthy balance sheet, we are confident in our ability to continue executing on our strategic priorities to drive long-term growth and shareholder value.”