DISCOVERY COMMUNICATIONS REPORTS THIRD QUARTER 2015 RESULTS, INCREASES BUYBACK AUTHORIZATION BY $2 BILLION AND ANNOUNCES RESUMPTION OF SHARE REPURCHASES BEGINNING IN FOURTH QUARTER 2015
November 3, 2015
Third Quarter 2015 Financial Highlights:
- Revenues decreased 1% to $1,557 million (increased 8% excluding currency effects)
- Adjusted OIBDA decreased 9% to $576 million (decreased 1% excluding currency effects)
- Adjusted EPS increased 2% to $0.47 (increased 25% excluding currency effects)
Silver Spring, Maryland – November 3, 2015: Discovery Communications, Inc. (“Discovery” or the “Company”) (NASDAQ: DISCA, DISCB, DISCK) today reported financial results for the third quarter ended September 30, 2015.
“Discovery’s unique portfolio of assets and global brands drove yet another quarter of strong worldwide viewership and financial results,” said David Zaslav, President and CEO of Discovery Communications. “Discovery is like no other media company, propelled by our unmatched global infrastructure, local leadership, efficient global content model and sturdy position in the U.S., and we are confident in our ability to drive near and long-term growth and shareholder value.”
Third Quarter Results
Third quarter revenues of $1,557 million decreased 1% compared to the third quarter a year ago, as 8% growth at U.S. Networks was more than offset by a 9% decline at International Networks, primarily due to currency effects. Adjusted Operating Income Before Depreciation and Amortization (“OIBDA”) decreased 9% to $576 million, as 4% growth at U.S. Networks was more than offset by a 21% decline at International Networks, primarily due to currency effects, and a small operating loss at Education and Other. Total Company revenues grew 8% and Adjusted OIBDA declined 1% excluding currency effects, as changes in foreign currency exchange rates reduced third quarter revenue and Adjusted OIBDA growth by 9% and 8%, respectively. Excluding currency effects and the impact of the Eurosport acquisition, the SBS Radio disposition, and the consolidation of Discovery Family, total Company revenues increased 7% and Adjusted OIBDA decreased 1%.
Third quarter net income available to Discovery Communications, Inc. was relatively flat at $279 million ($0.43 per diluted share) compared to $280 million ($0.41 per diluted share) for the third quarter a year ago, primarily due to a net loss from equity investees, mostly offset by lower income tax expense. Adjusted Earnings Per Diluted Share ("Adjusted EPS"), which excludes the impact of amortization of acquisition-related intangible assets, was $0.47 in the third quarter of this year, up 2%, compared to $0.46 in the same period a year ago. Adjusted EPS increased 25% excluding currency effects, as changes in foreign currency exchange rates reduced third quarter Adjusted EPS by 23%. For the last twelve months, Adjusted EPS excluding currency effects was up 11% compared to the prior twelve month period.
Free cash flow decreased to $234 million for the third quarter, primarily due to the timing of changes in working capital and higher content spend. Free cash flow is defined as cash provided by operating activities less purchases of property and equipment.
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Discovery Communications Third Quarter 2015 Results Press Release