Discovery (DISCA) on Tuesday reported second-quarter results that were in line with expectations as the company moves to more digital and direct-to-consumer programming.
The Silver Spring, Md.-based company, which operates such cable TV networks as Discovery Channel and Animal Planet, earned $1.61 per adjusted share for the quarter ended June 30, up from $0.66 in the prior-year period and well ahead of Capital IQ’s consensus of $0.98. Excluding a one-time, non-cash income tax benefit of $455 million, after-tax restructuring and $8 million in other charges, adjusted EPS was $0.98.
Revenue edged up to $2.89 billion from $2.85 billion last year, and equal to the Street’s expectations.
“We delivered another quarter of strong operating and financial performance, with the benefits of the Scripps Networks acquisition flowing through all areas of our global business, while accelerating our pivot to digital and direct-to-consumer offerings with IP that powers people’s passions,” said Chief Executive David Zaslav. “With an exceptional team in place, strong top-line performance and a healthy balance sheet, we are confident in our ability to continue executing on our strategic priorities to drive long-term growth and shareholder value.”
Discovery last year completed its $14.6 billion acquisition of Scripps Network Interactive, adding such channels as HGTV, Food Network and Travel Channel.
Revenue for the company’s US networks rose 5% from last year to $1.86 billion, with advertising revenue gaining 6% and distribution advancing 5%. The company said advertising revenues were driven by price increases and continuing monetization of its digital content. Distribution gains were led higher by contractual affiliate rates and additional carriage on streaming platforms.
Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.