Summary
Discovery Communications, Inc.'s 2009 10-K report highlights a year of robust revenue growth, primarily driven by increases in distribution and advertising revenues across its U.S. and International Networks segments. The company demonstrated strong operating income growth, buoyed by strategic content investments and expanding global reach. A significant event during the year was the formation of a 50-50 joint venture with Hasbro for a children's programming network, which resulted in a substantial gain on disposition. Financially, Discovery navigated a dynamic economic environment, managing its debt and capital resources effectively. The company's strategy focused on leveraging its extensive content library, expanding distribution across new platforms, and optimizing operational efficiencies. Despite challenges such as increased programming costs and evolving technology, Discovery positioned itself for continued growth by investing in high-quality non-fiction programming and exploring emerging opportunities like High Definition and 3D television content.
Financial Highlights
51 data points| Revenue | $3.46B |
| Cost of Revenue | $1.04B |
| Gross Profit | $2.41B |
| SG&A Expenses | $1.19B |
| Operating Expenses | $2.18B |
| Operating Income | $1.27B |
| Interest Expense | $248.00M |
| Net Income | $549.00M |
| EPS (Basic) | $1.28 |
| EPS (Diluted) | $1.27 |
| Shares Outstanding (Basic) | 423.00M |
| Shares Outstanding (Diluted) | 425.00M |
Key Highlights
- 1Discovery Communications reported strong revenue growth in 2009, with total revenues reaching $3.516 billion, up 2% from $3.443 billion in 2008.
- 2Operating income significantly increased to $1.235 billion in 2009, a 17% rise from $1.057 billion in 2008, reflecting improved operational performance and strategic execution.
- 3The company generated a substantial gain on disposition of $252 million in 2009 related to the formation of the Hasbro-Discovery joint venture for a children's network.
- 4Distribution revenues and advertising revenues both saw increases in 2009, indicating strong demand for Discovery's programming and advertising inventory.
- 5International Networks segment showed robust growth, with total revenues up 3% and Adjusted OIBDA up 16%, driven by subscriber growth and increased advertising in key markets.
- 6Discovery continued to invest in content, with programming expenses representing a significant portion of operating costs, essential for maintaining its competitive edge.
- 7The company maintained a strong liquidity position with $623 million in cash and cash equivalents and $1.6 billion available under its revolving credit facility as of December 31, 2009.