Deadline Discovery Communications

The numbers are OK, but investors may be cranky: This is the third time in a row that Discovery Communications‘ earnings have fallen short of the Street’s projections. The company reported Q1 net income of $231M, +3.6% vs the period last year, on revenues of $1.16B, +6.5%. The top line is a little ahead of the $1.15B that analysts anticipated. But earnings at 64 cents a share are a penny shy of the consensus forecast. Revenues for the U.S. networks were up just 1% to $686M. The segment suffered in comparison to last year when it benefited from a slug of cash from streaming services. Distribution revenues were down 9% year-over-year. Yet many may be surprised to see ad sales up 8%; some analysts expected to see a number closer to 10%. All told, the adjusted cash flow for the U.S. networks fell 5% to $377M. International was a different story with revenues up 17% to $444M, and adjusted cash flow +8% to $184M. Discovery projects that it will end this year with as much as $5.7B in revenue and as much as $1.3B in net income available to shareholders. READ MORE »

Sharks used to be the big stars for Discovery Communications. But the company’s upfront presentation in New York included a varied lineup of celebs with Oprah Winfrey, Tyler Perry, Mariel Hemingway, Morgan Freeman, William Hurt, LaToya Jackson, NASCAR’s Jeff … Read More »

The cable networks company says that Q4 profits were dinged by an increase in tax reserves and its accounting for stock-based compensation in a report that at first glance seems to have few big surprises. Discovery reported net income of $224M, -33.3% vs the last three months of 2011, on revenues of $1.2B, +8.5%. The revenue number is right where analysts expected it to be. But earnings at 61 cents a share contrast with expectations for 76 cents. The company tells the Street this morning that revenues in 2013 will be at least $5.6B and could go as high as $5.7B, which would be +27%, assuming its acquisition of the SBS Nordic operations closes in this quarter. That’s well ahead of the forecast by RBC Capital Markets’ David Bank, who expected $5.4B for 2013. Analysts likely will have questions about the performance of Discovery’s U.S. networks, where revenues increased just 4% to $703M in Q4 with operating income of $408M, +13%. The earnings report says that while ad sales were +9%, distribution revenue only rose 2% due to an apparent slowdown in licensing. Read More »

EXCLUSIVE: Discovery has expanded Nancy Daniels‘ role at the company. She has been named General Manager of Discovery Fit & Health, heading all operations for the network, including development and programming. Daniels will also keep her current responsibilities as EVP Production and Development, West for Discovery Channel, overseeing all aspects of development and programming for Discovery Channel that originate from the network’s West Coast offices. Additionally, Daniels will oversee all live events for the network that have included such recent specials as Chopper Live. Daniels is based in Los Angeles and will continue to report to Eileen O’Neill, Group President Discovery and TLC Networks. “Nancy has a proven track record for sharp storytelling and recognizing compelling real-life characters,” O’Neill said.

Discovery Fit & Health has been without a dedicated top executive since SVP Rita Mullin last year moved to sister network OWN where she is head of programming. The once small fitness channel FitTV was rebranded as Discovery Fitness & Health in 2011, merging FitTV’s programming with that of the bigger Discovery Health Channel after it became OWN. Discovery Fit & Health’s ratings have been sporadic, and O’Neill indicated that Daniels will spearhead a rebuilding effort. “When I want to reinvigorate a network, Nancy is my go-to,” O’Neill said. “By placing this operation under her supervision, I can maximize her ability to give this network a new direction, as we did with both TLC and Discovery Channel.” Read More »

The TV networks company-led group invested $20M in an intriguing business: Grockit has a service called Learnist that enables students planning to take tests such as the SATs and LSATs to help each other prepare with games and other … Read More »