Discovery Q1 Earnings Top Estimates Thanks in Part to Global Distribution Growth
Discovery Communications released its first quarter 2015 financials on Tuesday morning just before the U.S. stock markets opened, reporting earnings per share of $0.37 on net income of $250 million and $1.537 billion in revenue.
Wall Street had forecast earnings per share (EPS) of $0.35 on $1.54 billion in revenue, according to numbers compiled by Yahoo Finance. Zacks estimated EPS at a penny higher. Therefore, Discovery topped earnings expectations by a penny or two, and made its revenue target thanks to rounding.
Revenue was up nine percent over the first quarter a year ago, led by 10 percent growth at International Networks and six percent growth domestically. At the U.S. networks, that rise came from 13 percent distribution growth and 1 percent advertising growth, which were partially offset by losses elsewhere. The increase under the former line item came about primarily due to higher rates and the consolidation of Discovery Family. Abroad, distribution sales leapt 17 percent.
Net income a year ago was $230 million, leading to earnings at the time of $0.33 per share.
Also Read: 'Naked and Afraid' Renewed by Discovery Channel for Season 3 (Exclusive)
President and CEO David Zaslav stated: “2015 is off to a great start, as our strategy of investing in and owning world-class content to leverage across our unparalleled global distribution platform continues to drive operating momentum and strong financial results.”
“Despite facing a challenging U.S. marketplace and foreign currency headwinds, Discovery is successfully building market share, expanding our distribution and developing programming that resonates with audiences around the world,” he continued. “I’m extremely pleased with our strong performance this quarter and the numerous opportunities Discovery has in the months and years ahead.”
The company’s earnings conference call is set for 8:30 a.m. ET on Tuesday, at which time this post will be updated with any pertinent information.
Discovery stock (DISCA) closed on Tuesday at $33.37 per share, up $0.63 or 1.92 percent. The company spent $317 million on share repurchases during 2015’s initial quarter.
Also Read: 'The Walking Dead,' 'Better Call Saul' Ad Sales Propel AMC Networks Above Q1 Forecasts
On the final day of Q1, Discovery Channel unveiled its coming slate of programming. It later renewed hit “Naked and Afraid” (pictured above), as exclusively reported by TheWrap.
Earlier in the quarter, longtime executive Eileen O’Neill announced her departure from the company.
The post Discovery Q1 Earnings Top Estimates Thanks in Part to Global Distribution Growth appeared first on TheWrap.
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