Summary
Discovery Communications, Inc. (WBD) reported a solid increase in revenue for the third quarter of 2010, reaching $926 million, up 11% year-over-year, driven primarily by strong performance in both Distribution and Advertising segments. Net income attributable to Discovery Communications, Inc. also saw a significant rise to $186 million, an 86% increase from the prior year, reflecting improved operational efficiencies and strategic debt management. The company successfully refinanced a substantial portion of its debt, reducing interest expenses and strengthening its financial position. Key operational highlights include growth in both U.S. and International Networks segments, with advertising revenue showing particularly robust growth. The company also continues to invest in content, evidenced by increases in content amortization, while managing its operating expenses effectively. The balance sheet remains strong, with increasing cash and cash equivalents, providing flexibility for future investments and shareholder returns, including a recently approved $1 billion stock repurchase program.
Financial Highlights
50 data points| Revenue | $926.00M |
| Cost of Revenue | $261.00M |
| Gross Profit | $665.00M |
| SG&A Expenses | $306.00M |
| Operating Expenses | $614.00M |
| Operating Income | $312.00M |
| Interest Expense | $49.00M |
| Net Income | $186.00M |
| EPS (Basic) | $0.44 |
| EPS (Diluted) | $0.43 |
| Shares Outstanding (Basic) | 426.00M |
| Shares Outstanding (Diluted) | 431.00M |
Key Highlights
- 1Total revenues increased by 11% to $926 million for the three months ended September 30, 2010, compared to $837 million for the same period in 2009.
- 2Net income attributable to Discovery Communications, Inc. surged by 86% to $186 million for the three months ended September 30, 2010, compared to $100 million in 2009.
- 3Distribution revenues grew 7% and advertising revenues increased by 18% year-over-year, indicating strong demand for Discovery's content and advertising opportunities.
- 4The company successfully repaid a significant portion of its debt in June 2010, utilizing proceeds from a new debt issuance and cash on hand, which is expected to reduce future interest expenses.
- 5Cash provided by operating activities increased to $445 million for the nine months ended September 30, 2010, up from $384 million in the prior year, demonstrating improved operational cash generation.
- 6A new $1 billion stock repurchase program was authorized in July 2010, signaling management's confidence and commitment to returning value to shareholders.
- 7The company adopted new accounting guidance for VIEs, resulting in the deconsolidation of OWN and APJ joint ventures and their classification under the equity method, impacting prior period comparability but providing a clearer financial picture.