Summary
Discovery Communications, Inc. (WBD) reported revenues of $1.65 billion for the three months ended June 30, 2015, a 3% increase year-over-year. Net income available to Discovery Communications, Inc. stockholders was $286 million, a decrease from $379 million in the prior year's comparable period. The company experienced a decline in operating income, primarily driven by increased costs of revenue and selling, general, and administrative expenses, despite growth in distribution revenue. International Networks saw a notable decline in Adjusted OIBDA, impacted by the Eurosport acquisition and currency fluctuations. The company's balance sheet shows total assets of $15.73 billion, with a decrease in cash and cash equivalents to $232 million from $367 million at the end of 2014. Debt levels remain substantial, with the noncurrent portion of debt increasing to $6.86 billion. Significant activity includes the issuance of new Euro and USD denominated senior notes, as well as the redemption of existing senior notes. The company continues its stock repurchase program, with $416 million remaining authorization.
Financial Highlights
45 data points| Revenue | $1.65B |
| Cost of Revenue | $564.00M |
| Gross Profit | $1.09B |
| SG&A Expenses | $430.00M |
| Operating Expenses | $1.10B |
| Operating Income | $557.00M |
| Interest Expense | $77.00M |
| Net Income | $286.00M |
Key Highlights
- 1Total revenues for Q2 2015 increased 3% to $1.65 billion, driven by a 12% rise in distribution revenue, partially offset by a 4% decrease in advertising revenue.
- 2Net income available to Discovery Communications, Inc. stockholders declined 25% to $286 million compared to $379 million in Q2 2014.
- 3Operating income decreased 13% to $557 million, impacted by a 10% increase in costs of revenue and a 6% rise in selling, general, and administrative expenses.
- 4International Networks' Adjusted OIBDA decreased 11% to $266 million, primarily due to the integration of Eurosport and foreign currency fluctuations.
- 5Cash and cash equivalents decreased to $232 million as of June 30, 2015, from $367 million at the end of 2014, with cash used in financing activities increasing significantly.
- 6The company issued new senior notes totaling €600 million and $300 million in March 2015 and redeemed $850 million of existing senior notes.
- 7A significant commitment was made to acquire exclusive broadcast rights for the Olympic Games from 2018 to 2024 for €1.3 billion.