DISCOVERY COMMUNICATIONS REPORTS THIRD QUARTER 2010 RESULTS
November 2, 2010
Silver Spring, Maryland - November 2, 2010:
David Zaslav, Discovery's President and Chief Executive Officer said, "Discovery continues to enjoy strong operational momentum across our businesses. Our ability to execute, combined with a robust advertising environment, enabled us to deliver third quarter results that exceeded our expectations. Most importantly, our revenue growth is translating into margin expansion and free cash flow growth as we remain focused on thoughtfully investing in our business and refining our cost structure. We are committed to building the next generation of growth drivers and are producing real returns from additional investments in Animal Planet, ID and our international networks, while launching our joint ventures, The Hub and OWN. We are excited by the opportunities these investments present to further grow our business long-term and generate increased value for shareholders."
Third quarter revenues of $926 million increased $89 million, or 11%, over the third quarter a year ago, led by 11% growth at U.S. Networks and 10% growth at International Networks. Adjusted Operating Income Before Depreciation and Amortization (1) ("OIBDA") grew 14% to $418 million, driven by a 12% increase at U.S. Networks and an 23% increase at International Networks.
Third quarter net income from continuing operations available to Discovery Communications, Inc. stockholders of $161 million ($0.37 per diluted share) increased $68 million compared to $93 million ($0.22 per diluted share) for the third quarter a year ago. The current quarter results reflect the strong operating performance and $43 million of lower expense in the current year from the unrealized change in the fair value of mark-to-market share-based compensation.
Free cash flow was $346 million for the third quarter, an increase of $308 million from the third quarter of 2009, primarily reflecting the increased operating performance and higher cash tax payments a year ago of $81 million related to the sale of Discovery Kids as well as $59 million of tax payments in 2009 related to prior periods. Free cash flow is defined as cash provided by operating activities less acquisitions of property and equipment.
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