Subscriber growth in CEEMEA was one of the main factors in Discovery’s strong performance in its International Networks’ division in Q2.
Revenues increased by 23% year-on-year to $802 million, with advertising revenues being up by 23% and distribution revenues by 19%.
Excluding Eurosport and foreign currency fluctuations, total revenues were up 14%.
Advertising revenues, excluding Eurosport, were up 17% in local currency terms, primarily due to increased pricing and volume in Western Europe, Latin America and CEEMEA as well as from eight additional days due to the timing of the closing of the Nordic acquisition.
Distribution revenues, excluding Eurosport, grew 10% in local currency terms, mainly from increased subscribers and higher rates in Latin America and subscriber growth in CEEMEA and as well as due to the timing of the SBS Nordic acquisition.
Other revenues increased 22% excluding Eurosport and foreign currency fluctuations due to additional revenues from new production studios.
Meanwhile, adjusted OIBDA increased 19% to $297 million on a reported basis and was up 15% excluding Eurosport and foreign currency fluctuations.
Overall, Discovery Communications had revenues of $1,610 million in Q2, up 10% year-on-year.
Adjusted OIBDA was up 6% to $694 million and net income by 26% to $379 million.
Commenting on the results, David Zaslav, Discovery’s president and CEO, said: “The operating strength across Discovery’s organic businesses, along with increased contributions from strategic acquisitions, led to sustained financial momentum during the second quarter. Our persistent focus on building a broad and deep content portfolio to leverage the opportunities across our unique distribution platform is driving viewership and revenue growth worldwide as pay-tv continues to evolve. Going forward, investing in compelling programing remains a priority as we integrate our recent acquisitions and build new avenues of growth so we can deliver additional long term value to our shareholders.”
