Discovery Communications Q3 Profit Rises; Backs Full-year View

(RTTNews) - Discovery Communications, Inc. (DISCA, DISCB, DISCK), a non fiction media company, Thursday reported a significant increase in third-quarter profit, as revenues climbed amid strong growth in both U.S. and international networks. The firm also reiterated its full-year outlook.

Net income available to the company's stockholders climbed to $255 million from $205 million in the prior year. Earnings per share grew to $0.71 from $0.55. The firm attributed the increase to strong operating performance in the current year and improved earnings from equity investments.

Adjusted earnings per share, which excludes the impact of the amortization of acquisition related intangible assets, were $0.80 per share.

On average, 26 analysts polled by Thomson Reuters expected earnings of $0.72 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues increased 28 percent to $1.375 billion from $1.076 billion, led by 59 percent growth at International Networks and 10 percent growth at U.S. Networks. Analysts expected revenues of $1.39 billion. U.S. Networks improved revenues by 10 percent to $733 million, primarily driven by advertising and distribution revenue growth.

Within the business, advertising revenue increased 12 percent mainly due to higher delivery and increased pricing while Distribution revenue increased 10 percent amid increased revenue from licensing agreements and higher rates.

International Networks revenues surged 59 percent to $620 million, as advertising revenues were surged 127 percent and distribution revenues increased 29 percent. Looking ahead, for full year ending December 31, the company still expects net income available to Discovery Communications stockholders of $1.100 billion to $1.150 billion, and total revenue between $5.550 billion and $5.625 billion. Analysts expect annual earnings of $3.11 per share on revenues of $5.58 billion.

DISCA closed on Wednesday at $84.36.