You will be redirected back to your article in seconds

Discovery Sees Q3 Profit Fall On Lionsgate Impairment, Overseas Declines

Discovery Communications said third quarter profit declined as the company grappled with to performance shortfalls in its  international operations and suffered a $50 million impairment charge related to its decision to acquire a minority stake in Lionsgate late last year.

The Silver Spring, Md. owner of the Discovery Channel, TLC and Discovery ID, said net income fell  22% to $219 million compared to $279 million in the year-earlier period. Revenue in the period was basically flat, totaling $1.556 million. The company said a 2% revenue increase at its U.S. operations and a 19% increase at its education unit were offset by a revenue decline of 3% a tits international holdings, largely due to the effects of currency fluctuations.

Discovery “faced challenging but expected headwinds this quarter,” noted David Zaslav, the company’s chief executive, in a prepared statement.

The company said its U.S networks saw ad sales revenue fall 3% during the third quarter. Revenue rose  2% to $793 million., owing to rate hikes passed on to cable and satellite distributors, despite what Discovery said was a “slight decline” in the homes it reaches. Difficulty was more pronounced at the company’s international networks, where revenue fell 3% to $720 million. Ad sales fell 6%.

In a research note issued Tuesday, media analyst Michael Nathanson called some of the company’s performance “ominous,” suggesting investors might see other media companies show similar issues with advertising and affiliate revenue.

 

More Biz

  • Aki Kaneko

    Oak View Group Names Aki Kaneko VP of Sales & Sponsorships

    Discovery Communications said third quarter profit declined as the company grappled with to performance shortfalls in its  international operations and suffered a $50 million impairment charge related to its decision to acquire a minority stake in Lionsgate late last year. The Silver Spring, Md. owner of the Discovery Channel, TLC and Discovery ID, said net income fell […]

  • Sony TV to See Layoffs With

    Sony Pictures TV to See Layoffs With Consolidation of International TV Operations, Launch of Direct-to-Consumer Unit

    Discovery Communications said third quarter profit declined as the company grappled with to performance shortfalls in its  international operations and suffered a $50 million impairment charge related to its decision to acquire a minority stake in Lionsgate late last year. The Silver Spring, Md. owner of the Discovery Channel, TLC and Discovery ID, said net income fell […]

  • Paul Simon

    Paul Simon to Stage 'Unique' Farewell Concert at Queens' Flushing Meadows Corona Park

    Discovery Communications said third quarter profit declined as the company grappled with to performance shortfalls in its  international operations and suffered a $50 million impairment charge related to its decision to acquire a minority stake in Lionsgate late last year. The Silver Spring, Md. owner of the Discovery Channel, TLC and Discovery ID, said net income fell […]

  • Merger Angst Warner Media

    High Anxiety: WarnerMedia Staff Braces for New Boss as AT&T Takes Control

    Discovery Communications said third quarter profit declined as the company grappled with to performance shortfalls in its  international operations and suffered a $50 million impairment charge related to its decision to acquire a minority stake in Lionsgate late last year. The Silver Spring, Md. owner of the Discovery Channel, TLC and Discovery ID, said net income fell […]

  • Bob Iger arrives at the Oscars,

    Bob Iger: Disney Has 'Much Better' Chance of Closing Fox Deal Than Comcast

    Discovery Communications said third quarter profit declined as the company grappled with to performance shortfalls in its  international operations and suffered a $50 million impairment charge related to its decision to acquire a minority stake in Lionsgate late last year. The Silver Spring, Md. owner of the Discovery Channel, TLC and Discovery ID, said net income fell […]

  • Brian Roberts, Bob Iger Battle Over

    Brian Roberts and Bob Iger Go Head-to-Head in the Battle for Fox

    Discovery Communications said third quarter profit declined as the company grappled with to performance shortfalls in its  international operations and suffered a $50 million impairment charge related to its decision to acquire a minority stake in Lionsgate late last year. The Silver Spring, Md. owner of the Discovery Channel, TLC and Discovery ID, said net income fell […]

  • Disney Fox Merger Illustration by Rob

    Disney Ups Fox Bid to $71.3 Billion, Outflanking Comcast

    Discovery Communications said third quarter profit declined as the company grappled with to performance shortfalls in its  international operations and suffered a $50 million impairment charge related to its decision to acquire a minority stake in Lionsgate late last year. The Silver Spring, Md. owner of the Discovery Channel, TLC and Discovery ID, said net income fell […]

More From Our Brands

Access exclusive content