×
You will be redirected back to your article in seconds

Discovery Q1 Profit Falls On Scripps Merger

The acquisition of Scripps Networks Interactive is likely to be a boon to the new Discovery Inc., which has swelled in size thanks to the companies’ recent merger. But placing the owner of Food Network and HGTV under its corporate aegis pushed the company to a loss in its first quarter as a merged entity.

The company, which also owns the Discovery Channel, TLC and the Oprah Winfrey Network said first quarter net income fell to a loss of $8 million, compared with $215 million in the year-earlier period, citing lower operating results, higher restructuring charges, and transaction costs associated with the acquisition of Scripps.

Revenue, however, soared, reflecting the boost the company will get from its transaction. Revenue in the first quarter came to nearly $2.31 billion, up 43% from $1.61 billion in the year-earlier quarter. On a pro forma basis, Discovery said,  total company first quarter revenues grew 10%, with revenue growing 26% at its international holdings, and 10% at its domestic cable operations.

David Zaslav, CEO of the company, said its broader array of media properties would help going forward. “As our industry continues to evolve, we are uniquely positioned to maximize the value of our traditional pay-TV business while driving new opportunities and growth from our digital and direct to consumer businesses around the world,” he said in a prepared statement.

Revenue at the company’s U.S. networks  increased 42%, to $1,17 billion. Excluding the impact of the Scripps buy, revenue rose  3%, with distribution and advertising revenues up 2% and 4%, respectively.  Without the merger, revenue for the first quarter grew 2%, driven by 2% distribution growth and 2% advertising growth, the company said.

More to come….

More TV

  • John Clarke dead Days of Our

    'Days of Our Lives' Star John Clarke Dies at 88

    John Clarke, best known for portraying Mickey Horton on the soap opera “Days of Our Lives,” died due to complications of pneumonia in Laguna Beach, Calif. on Oct. 16. He was 88. Clarke suffered a stroke in 2007 and had been in a state of deteriorating health over the past few years. His daughter, Melinda, [...]

  • ESPN

    ESPN Revamps Hallmark Sports Investigation Series 'Outside The Lines'

    ESPN is designing a new configuration for “Outside The Lines.” The long-running investigative program, which has aired weekdays on various ESPN networks since 2003, is being cancelled in favor of an hour-long edition on Saturday mornings and various “OTL” segments that will pop up during programming staples such as “SportsCenter” and “E:60,” the Disney-backed sports-media [...]

  • James Schmerer

    James Schmerer, 'MacGyver' and 'CHiPs' Writer, Dies at 81

    Prolific television writer James Schmerer, whose credits included “The High Chapparal,” “MacGyver” and “CHiPs,” died on Oct. 4 at his home in Eugene, Ore., following a stroke. He was 81. Schmerer, a native of Flushing, N.Y., launched his television writing career in the 1960s and became a member of the Writers Guild of America West [...]

  • CBS

    CBS Directors Initiative Unveils Class Of 2019-20

    CBS has announced the four participants chosen for its 2019-2020 Directors Initiative. The initiative, which is now in its 16th year, aims to provide a platform for experienced directors to gain access to showrunners, execs, managers and agents, as well as shadowing network and TV studio shows at CBS throughout the year. This year’s participants [...]

  • Lori Loughlin

    Lori Loughlin Charged With Bribery in College Admissions Case

    Actress Lori Loughlin and her husband, designer Mossimo Giannulli, were indicted on a charge of conspiring to commit federal programs bribery on Tuesday, in connection with allegations that they paid $500,000 to get their daughters into the University of Southern California. Loughlin and Giannulli already faced charges of conspiring to commit mail fraud and money [...]

  • Live+7 Ratings for Week of Oct.

    Live+7 Ratings for Week of Oct. 7: 'This Is Us' Overtakes 'Masked Singer'

    “This Is Us” and “The Masked Singer” continue to dual it out at the top of the delayed viewing ratings chart, with the NBC drama narrowly overtaking the Fox singing show after seven days of delayed viewing for week 3. “This Is Us” was the biggest grower of the week, adding a 1.5 rating to [...]

  • Gary Newman

    Fox TV Group Alum Gary Newman Joins Attention Capital as Executive Partner

    Former Fox TV Group chairman Gary Newman has joined Attention Capital, the startup venture launched earlier this year by another Fox alumnus, Joe Marchese. Newman and another media biz veteran, Lisa Gersh, were named Tuesday as executive partners of Attention Capital. Newman will focus on acquisition and investment opportunities. Marchese, who previously headed advertising sales [...]

More From Our Brands

Access exclusive content