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DISCOVERY COMMUNICATIONS REPORTS FIRST QUARTER 2012 RESULTS AND ANNOUNCES $1 BILLION INCREASE TO SHARE REPURCHASE PROGRAM

May 8, 2012

Contact - Michelle Russo
EVP - Global Communications
+44 20 8811 3592

First Quarter 2012 Financial Highlights:

  • Revenues increased 16% to $1,103 million
  • Adjusted OIBDA increased 19% to $507 million
  • Net income decreased to $222 million (up 9% excluding one-time prior year item)
  • Free cash flow increased 10% to $227 million
  • Repurchased 6.9 million shares for an aggregate purchase price of $288 million

Silver Spring, Maryland - May 8, 2012:  Discovery Communications, Inc. ("Discovery" or the "Company") (NASDAQ: DISCA, DISCB, DISCK) today reported financial results for the first quarter ended March 31, 2012.

David Zaslav, Discovery's President and Chief Executive Officer said, "Discovery is off to a great start in 2012 with strong first quarter results that built upon the consistent financial and operating momentum we generated throughout 2011.   Viewers around the world are spending more time with our networks than ever before, and we are leveraging the demand for our programming across a worldwide ad market that remains healthy.  The universal appeal of our content is also providing us further opportunities to capitalize on developing distribution systems and an evolving global pay-tv landscape.  Investing in our brands to maximize the potential of our unique distribution platform, as well as emerging opportunities, remains a priority, and we are focused on doing so while delivering sustained growth and returning capital to shareholders."

First Quarter Results

First quarter revenues of $1,103 million increased $152 million, or 16%, over the first quarter a year ago, led by 16% growth at U.S. Networks and 18% growth at International Networks.  Adjusted Operating Income Before Depreciation and Amortization (1) ("OIBDA") grew 19% to $507 million, driven by an 18% increase at U.S. Networks and a 19% increase at International Networks.   Adjusted OIBDA margin for the first quarter increased to 46% from 45% in the first quarter of 2011.

First quarter net income from continuing operations available to Discovery Communications, Inc. stockholders of $221 million ($0.57 per diluted share) decreased $84 million compared to $305 million ($0.74 per diluted share) for the first quarter a year ago as strong operating performance in the current year was more than offset by a gain of $102 million, net of tax, in the first quarter of 2011 from the  contribution of the Discovery Health network to the OWN: Oprah Winfrey Network joint venture.  Current quarter results also reflect that during the quarter the Company began recording 100% of OWN's net losses in Other expense, net, as accumulated operating losses at OWN exceeded the equity contributed to OWN. 

Free cash flow was $227 million for the first quarter, an increase of $21 million from the first quarter of 2011, due to increased operating performance and lower long-term incentive compensation payments, partially offset by higher cash tax payments.  Free cash flow is defined as cash provided by operating activities less acquisitions of property and equipment.


TO VIEW THE FULL PRESS RELEASE IN PDF FORMAT, CLICK:
Discovery Communications First Quarter 2012 Results Press Release