Discovery said profit fell in the third quarter as charges associated with its recent merger with Scripps Networks Interactive weighed on the company’s bottom line.
The owner of the Discovery Channel, TLC and ID cable networks said net income totaled $117 million, or an adjusted 52 cents per share, compared with $218 million, or 38 cents per share, in the year-earlier period. “Improved operating results were more than offset by higher restructuring and other charges associated with the integration of Scripps Networks, higher tax expenses and higher interest expense,” the company said in a prepared statement.
Revenue in the third quarter rose 57% to $2.59 billion, but Discovery said excluding foreign currency fluctuations and transactions involving Scripps, Motor Trend and Opran Winfrey Network, it rose just 1%, with a 3% increase from international assets and a 2% increase from U.S. properties.
At Discovery’s U.S. networks, an 8% increase in advertising revenues was offset by a 2% decrease in distribution revenues and a 29% decrease in other revenues.
At Discovery’s international networks, revenue from distribution rose 3% increase, while advertising revenue remained flat.
“We continue to drive organic growth opportunities across our diverse portfolio, further positioning us for continued cash flow generation and additional value creation. We remain increasingly optimistic about the roadmap ahead of us as we drive forward with our plan to transform our Company,” Discovery CEO David Zaslav said in a prepared statement.
More to come…