You will be redirected back to your article in seconds

Discovery Posts Q4 Loss on One-Time Charges Despite Revenue Climb

Discovery Communications said fourth-quarter profit fell due to a series of one-time charges, even as advertising and distribution revenues climbed both at its U.S. properties and abroad.

The owner of the Discovery Network, TLC and OWN cable outlets, which said Tuesday it has obtained clearance from the Department of Justice to purchase Scripps Networks, said net income fell to a loss of $1.14 billion, or $1.99 per share, citing a goodwill impairment charge of $1.32 billion related to its European operations, and a charge of $59 million related to costs related to the Scripps acquisition. In the year-earlier period, Discovery reported a profit of $304 million or 51 cents per share.

 Revenue in the period climbed 11% to more than $1.86 billion, compared with $1.67 billion, with growth evident at both the company’s U.S. and European properties.

“Solid global advertising and distribution revenue growth helped us achieve our 2017 strategic and financial objectives,”said David Zaslav, Discovery’s chief executive, in a prepared statement. “Additionally, we remain excited by the prospects for a combined Discovery and Scripps Networks.”

At Discovery’s U.S. operations, fourth-quarter revenues rose 10%, to $892 million. The company cited 7% increase in revenue related to distribution, and an 8% increase in revenue related to advertising.  driven by 7% distribution growth. Advertising was strong at both the TLC and ID networks, the company said, but subscriptions to its overall portfolio of networks fell 5%.

Revenue rose at Discovery’s overseas holdings. Revenue at its international networks rose 13% to $927 million. Distribution revenues grew 10%, mostly due to higher rates in Europe following
further investment in sports content, and higher contractual rates in Latin America. Advertising revenue rose 5%, mostly due to higher volume and pricing across key markets in Europe and higher volume in Latin America, the company said.


More TV

  • Gareth Neame

    'Downton Abbey' Producer Nabs Rights to 'Anyone,' Upcoming Charles Soule Novel

    Carnival Films will adapt Charles Soule’s “Anyone” for TV, having snagged the rights to the comic book writer’s second novel before it is published in December by Harper Perennial. Soule’s comic credits include “Daredevil,” “She-Hulk,” and “Death of Wolverine.” He will handle the “Anyone” adaptation alongside Gareth Neame, Nigel Marchant, and Joanna Strevens from Carnival. [...]

  • 'The Crown': Josh O'Connor, Erin Doherty

    'The Crown': Josh O'Connor, Erin Doherty on Charles and Anne 'Breaking the Mold'

    SPOILER ALERT: Do not read if you have not yet watched “The Crown” Season 3 on Netflix. The arrivals of Prince Charles (Josh O’Connor) and Princess Anne (Erin Doherty) midway through “The Crown’s” third season infuse the show with a youthful energy reminiscent of the first two years. But, they also offer a sense of rebelliousness, [...]

  • SATURDAY NIGHT LIVE -- "Harry Styles"

    Harry Styles Premieres New Song, Plays Trash-Eating Dog on ‘Saturday Night Live’ (Watch)

    The past couple of seasons of “Saturday Night Live” have seen some impressive hosting/musical performer double-duty stints, including Childish Gambino, Halsey and Chance the Rapper — and last night Harry Styles was more than up to the challenge. The singer appeared in nearly every skit — including turns as a naïve office intern, a gangster, [...]

  • Mindy Kaling Actors on Actors

    Why Mindy Kaling Turned to Social Media to Find the Lead of Her Netflix Series

    Constance Wu (“Hustlers”) and Mindy Kaling (“Late Night”) explained how the internet helped expand the casting pool for their projects during a conversation for “Variety Studio: Actors on Actors.” Wu began the interview: “When I did ‘Crazy Rich Asians’ and they were looking for actors, it was crazy how many people said, ‘Well, there are [...]

  • SATURDAY NIGHT LIVE -- "Harry Styles"

    'Saturday Night Live' Turns the Impeachment Hearings Into a Soap Opera (Watch)

    “Saturday Night Live” kicked off its Nov. 16 episode with a take on the biggest news story of the previous week (and foreseeable future): the impeachment hearings. But another big story of the week, especially in Hollywood, was how NBC’s last remaining daytime drama, “Days of our Lives,” had let its actors out of their [...]

More From Our Brands

Access exclusive content