Discovery Communications has reported first quarter revenues of $1,411 million in 2014, an increase of $255 million, or 22 per cent, over the first quarter a year ago, led by 51 per cent growth at International Networks and 3 per cent growth at US Networks. Advertising revenues grew to $689 million in Q1 2014 as compared to $508 million in the same quarter in 2013.
First quarter net income of $230 million was in-line with last year’s net income of $231 million, as the strong operating performance in the current year and lower stock based compensation expense were more than offset by increased amortisation associated with the purchase price allocation for the SBS Nordic transaction and higher other income in the prior year, primarily due to a $92 million gain associated with the consolidation of Discovery Japan.
For the full year ending December 31, 2014, Discovery Communications expects total revenue between $6.45 billion and $6.625 billion, Adjusted Operating Income Before Depreciation and Amortisation (OIBDA) between $2.6 billion and $2.725 billion, and net income available to Discovery Communications between $1.2 billion and $1.3 billion.
The outlook incorporates current foreign exchange rates for revenues and expenses, the current share price for mark-to-market equity-based compensation calculations, and assumes that the Eurosport transaction closes during the second quarter of 2014.
Commenting on Discovery’s financial results, David Zaslav, Discovery’s President and Chief Executive Officer said, “Discovery’s strong organic growth continued during the first quarter as our global reach and sustained investment in diverse and engaging content allowed us to capitalise on the growing demand for pay-TV programming worldwide. The larger audiences and consistent market share gains we are delivering are driving sustained financial results, even as we further invest in our platforms and integrate strategic acquisitions that will enhance our long-term growth prospects. As we look to the remainder of 2014, leveraging the significant opportunities across our existing asset portfolio remains our priority so we can maintain our financial momentum while further building long-term shareholder value.”