Discovery Communications has for several quarters reinforced the notion to investors that its U.S. operations are a smaller part of its overall base. That idea was re-emphasized Thursday as the media company said fourth-quarter net income fell 12.4% despite positive results at its U.S. operations, largely due to changes in foreign-currency exchange rates at its overseas businesses.
The Silver Spring, Md., owner of Discovery Channel, TLC and other cable networks, said fourth quarter revenue fell 1.8% to almost $1,.65 billion in the quarter, compared with nearly $1.68 billion in the year-earlier period. A revenue gain of 6% at the company’s U.S. networks was offset by an 8% decline at its international units.
Discovery said net income came to $219 million, or 34 cents a share, down 12.4% from $250 million, or 38 cents a share, in the year-earlier period. Foreign currency exchange rates cut the adjusted earnings number by 24%, the company said.
Revenue at the company’s U.S. networks rose 6%, to $787 million,owing to increases in both advertising sales and distribution. Revenue from the company’s international networks fell 8%, to $816 million, owing to fluctuations in foreign-exchange currency rates, which offset increases in revenue from advertising and distribution.