Discovery Posts 9% Gains In '11 Revs
Discovery Communications has posted more double-digit gains in advertising revenue -- this time in the fourth quarter of 2011, as part of overall healthy financial gains for the period.
U.S. advertising revenues for the cable network group grew 13% to $364 million. Overall 2011 results were equally positive -- up 9% to $1.3 billion.
Strong sellouts of its inventory in the Q4 period led to the revenue hike. Still, Discovery says these results were reduced by $11 million in advertising revenues because of the change of Discovery Health channel to OWN: Oprah Winfrey Network.
For the year, Discovery dropped $49 million in advertising revenue because of OWN, a partnership with Harpo Studios. This new network has struggled throughout its first year, averaging around 250,000 viewers in prime time.
Discovery's U.S. distribution revenue was up 7% in the period to $282 million and up 12% yearly to $1.2 billion -- the result of higher overall rates and more networks on new digital tiers resulting from expanding licensing agreements.
International networks grew 18% in advertising revenue to $160 million for the fourth quarter, and 22% for the year to $518 million.
Overall, Discovery Communications revenue increased fourth-quarter revenues 11% to $1.1 billion, and 12% for 2011 to $4.2 billion.
Net income soared to $337 million in the fourth quarter of 2011 versus $197 million in the fourth quarter of 2010. For the year, net income was at $1.1 billion, up from $669 million in 2010.