Discovery Grows Earnings, Misses Estimates
SILVER SPRINGS, Md. (
) --
Discovery Communications
(DISCA) - Get Report
saw earnings rise during the third quarter, driven by revenue gains across all of its segments.
For the quarter ended September 30, the company saw earnings rise 97.9% to $186 million, or 43 cents per diluted share, compared with earnings of $94 million, or 22 cents per diluted share, in the same period a year ago. Earnings from continuing operations were 37 cents a share, below analyst estimates of 43 cents a share.
Revenue rose 10.6% to $926 million from $837 million during the quarter on higher revenues both nationally and internationally.
The company's U.S. networks revenue grew 11%, driven by gains in advertising and distribution. Advertising revenue grew 16% led by higher ratings and increased pricing. Distribution revenue was up 9% due to higher rates and subscriber growth.
Revenue from its international networks increased 10%. Advertising revenue grew 23% driven by higher sellouts and increased viewership. Distribution revenue grew 4% supported by subscriber growth across all international regions.
"Discovery continues to enjoy strong operational momentum across our businesses," president and CEO David Zaslav said. "We are committed to building the next generation of growth drivers and are producing real returns from additional investments in Animal Planet, ID and our international networks, while launching our joint ventures, The Hub and OWN. We are excited by the opportunities these investments present to further grow our business long-term and generate increased value for shareholders."
Revenue from its "education and other" segment was up 9% in the third quarter due to higher streaming volumes.
For the first nine months of the year, earnings rose 18.2% to $461 million, or $1.07 per share, compared with earnings of $390 million, or 92 cents, in the same period a year ago. Revenue rose 10% to $2.76 billion from $2.51 billion.
Management expects total revenue between $3.75 billion and $3.8 billion and net income of $650 million to $700 million for 2010.
During the third quarter the company repurchased a total of 1.12 million shares of its series C common stock at $33.61 per share, totaling about $38 million.
-- Written by Theresa McCabe in Boston.
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