DISCOVERY COMMUNICATIONS REPORTS FULL YEAR AND FOURTH QUARTER 2015 RESULTS
February 18, 2016
Full Year 2015 Financial Highlights:
- Revenues increased 2% to $6,394 million (increased 10% excluding currency effects)
- Adjusted OIBDA decreased 4% to $2,398 million (increased 4% excluding currency effects)
- Adjusted EPS decreased to $1.76 (increased 13% excluding currency effects)
- Repurchased $951 million worth of stock
Silver Spring, Maryland – February 18, 2016: Discovery Communications, Inc. (“Discovery” or the “Company”) (NASDAQ: DISCA, DISCB, DISCK) today reported financial results for the full year and fourth quarter ended December 31, 2015.
“In 2015, Discovery Communications continued to build momentum with our unmatched worldwide brands and leading multiplatform distribution network. We surpassed 3 billion cumulative viewers, launched more new networks and increased audience and market share, all of which helped to drive steady global growth and strong financial results,” said David Zaslav, President and CEO of Discovery Communications. “Propelled by our category leadership, broad rights ownership and content and brand expansion across platforms, Discovery is well positioned to thrive in the rapidly evolving media landscape and to drive continued shareholder value in the years ahead.”
Full Year Results
Full year revenues of $6,394 million increased $129 million, or 2%, compared to the prior year, as 6% growth at U.S. Networks was partially offset by a 2% decline at International Networks, primarily due to currency effects. Adjusted Operating Income Before Depreciation and Amortization (“OIBDA”) decreased 4% to $2,398 million, as 6% growth at U.S. Networks was more than offset by a 15% decline at International Networks, primarily due to currency effects, and a small operating loss at Education and Other. Excluding currency effects, total Company revenues and Adjusted OIBDA grew 10% and 4%, respectively, as changes in foreign currency exchange rates reduced both revenue and Adjusted OIBDA growth by 8%. Excluding currency effects and the impact of the Eurosport acquisition, the SBS Radio disposition, and the consolidation of Discovery Family, total Company revenues and Adjusted OIBDA increased 6% and 3%, respectively.
Full year net income available to Discovery Communications, Inc. declined to $1,034 million ($1.58 per diluted share) compared to $1,139 million ($1.66 per diluted share) for the full year 2014, primarily due to currency exchange rates, higher losses associated with the sale of businesses and lower equity earnings, partially offset by a decrease in taxes, restructuring costs and equity-based compensation. Adjusted Earnings Per Diluted Share ("Adjusted EPS"), which excludes the impact of amortization of acquisition-related intangible assets, was $1.76 for the full year compared to $1.84 for full year 2014. Adjusted EPS increased 13% excluding currency effects, as changes in foreign currency exchange rates reduced full year Adjusted EPS by 17%.
Free cash flow decreased to $1,174 million for the full year, primarily due to timing of working capital, higher content spend and the impact of currency exchange rates on operating results and working capital, partially offset by a lower impact from long-term incentive payments, cash taxes, and capital expenditures. Free cash flow is defined as cash provided by operating activities less purchases of property and equipment.
Fourth Quarter Results
Fourth quarter revenues of $1,646 million decreased 2% compared to the fourth quarter a year ago, as 6% growth at U.S. Networks was more than offset by an 8% decline at International Networks primarily due to currency effects. Adjusted OIBDA decreased 10% to $574 million, as 1% growth at U.S. Networks and breakeven results at Education and Other were more than offset by a 20% decline at International Networks, primarily due to currency effects. Total Company revenues grew 5% and Adjusted OIBDA decreased 1% excluding currency effects, as changes in foreign currency exchange rates reduced fourth quarter revenue and Adjusted OIBDA growth by 7% and 9%, respectively. Excluding currency effects and the impact of the Eurosport acquisition and the SBS Radio disposition, total Company fourth quarter revenues and Adjusted OIBDA increased by 8% and 1%, respectively.
Fourth quarter net income available to Discovery Communications, Inc. stockholders decreased to $219 million ($0.34 per diluted share) compared to $250 million ($0.38 per diluted share) for the fourth quarter a year ago, primarily due to foreign currency exchange rates, losses associated with the sale of businesses and higher net income attributable to noncontrolling interests, partially offset by a decrease in restructuring costs and higher earnings related to equity-method instruments. Adjusted EPS was $0.38 in the fourth quarter of this year compared to $0.43 in the same period a year ago. Adjusted EPS increased 12% excluding currency effects, as changes in foreign currency exchange rates reduced fourth quarter Adjusted EPS by 24%.
Free cash flow increased to $598 million for the fourth quarter, primarily due to lower cash taxes, timing of working capital and a lower impact from content spending, partially offset by the impact of foreign currency exchange rates on operating results and working capital.
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Discovery Communications Full Year and Fourth Quarter 2015 Results Press Release