Discovery Communications said tepid performance at its flagship U.S. networks resulted in a 13% dip in fourth quarter, even as revenue increased.
The Silver Spring, Md., owner of TLC, Discovery Channel and Investigation Discovery said net income in the period came to $250 million, or 38 cents per share, compared with $289 million, or 41 cents per share, in the year-earlier quarter.
Revenue in the period came to about $1.67 billion, a 9% rise, or an increase of $139 million, from the $1.54 billion it generated in the year-earlier period. Discovery said revenue rose 17% to $884 million at its international holdings and just 1% to $745 million at its U.S. TV operations.
Discovery said advertising revenue fell 3% at its U.S. networks, citing lower ratings and less demand from sponsors. U.S. distribution revenue increased 8% owing to higher rates and the consolidation of Discovery Family in the fourth quarter of 2014. Revenue from the company’s international networks rose 17% to $884 million, with distribution revenues up 24% and advertising revenues up 7%.