Fourth-Quarter Earnings Increase at Discovery

Discovery reported higher fourth-quarter earnings as income tax and and restructuring charges dropped.

Net income rose 77% to $476 million, or 67 cents per share, from $269 million, or 38 cents a share.

Revenue rose 2% to $2.874 billion.

At the company’s U.S. networks, adjusted operating income before depreciation and amortization was $925 million, down 4%. Advertising revenue was up 1% to $1.051 billion despite lower ratings. The increase stemmed from higher prices and sale of digital content and inventory.

Distribution revenue was up 5% to $673 million. Subscribers were down 5% in December compared to a year ago, indicating continued cord cutting. Subscribers to fully distributed networks were down 3%.

"2019 was a year of promises made and promises delivered,” said CEO David Zaslav. “Our differentiated local content strategy and global scale, coupled with our unique free cash flow conversion profile, provide distinct financial flexibility that allows us to adapt to changing media consumption habits. Our Board’s confidence in our strategic direction is highlighted by the recent authorization to repurchase up to an additional $2 billion of our shares."

Jon Lafayette

Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.