Discovery Communications 3Q earnings fall 29 pct on higher costs, currency fluctuation
Associated Press
11/03/09 7:50 PM EST
SILVER SPRING, MD. — Discovery Communications Inc. said Tuesday that its net income for the third quarter fell 29 percent as an increase in operating costs offset a slight uptick in revenue for the owner of cable networks.
Discovery, which owns the Discovery Channel, Animal Planet and TLC, reported net income of $95 million in the quarter compared with $134 million in the same quarter a year ago. Earnings per share came to 22 cents, down from 44 cents.
Revenue rose by 1 percent to $854 million. It would have been higher if not for a $22 million drag from foreign currency fluctuations at its international operations.
Results fell short of analysts' average earnings forecast of 22 cents per share, according to Thomson Reuters. But revenue exceeded their estimate of $849.6 million.
Discovery said revenue from its U.S. networks rose by 5 percent to $522 million, driven by a 5 percent increase each in distribution and advertising.
International networks revenue fell 2 percent to $293 million due to the drag from foreign exchange. Excluding the currency fluctuation, revenue would have risen by 6 percent.
For fiscal 2009, Discovery said it expects to report revenue of $3.45 billion to $3.5 billion and net income of $525 million to $550 million.
Analysts are expecting revenue of $3.48 billion and net income of $570.5 million.
Shares in Discovery rose 49 cents in after-hours trading to $28.50, after ending the regular session at $28.01, up 73 cents.
