Discovery Communications said first-quarter net income was essentially flat despite a 22% increase in revenue as costs associated with assembling businesses overseas weighed on the company’s bottom line.
The Silver Spring, Md., owner of the TLC, Discovery and Investigation Discovery cable outlets said first quarter net income came to $230 million, or 66 cents per share, compared with $231 million, or 63 cents a share in the year-earlier period.
Analysts had expected the company to post first quarter earnings of 71 cents per share.
Revenue rose 22% to $1.41 billion, compared with nearly %1.16 billion in the year-earlier quarter. In fact, revenue rose both at home and overseas, with revenue at the company’s U.S. networks increasing 4% to $319 million from $308 million, and revenue at the company’s international networks increasing 51% to $671 million from $444 million.
Discovery said its operating performance in the first quarter was “more than offset: by the cost of amortizing its recent purchase of SBS Nordic assets as well as comparisons with year-earlier results, when the company had a $92 million gain associated with the consolidation of properties in Japan.