witnessed big advertising revenue growth in its fourth-quarter period, recognized primarily from newly acquired international businesses.
Advertising revenue grew 40% to $817 million, with
overall company revenue -- including distribution and other revenue -- up nearly 30% to $1.5 billion. Net income grew 30% to $290 million from $224 million.
U.S. network revenue grew 5% to
$740 million, coming from 4% advertising growth to $411 million and 7% distribution growth to $309 million.
International business gained from acquiring Nordic SBS and consolidating
Discovery Japan operations. Core advertising was up 26% with affiliate fee revenues adding on 16%. Still, MoffettNathanson Research says cash flow -- earnings before interest, taxes, depreciation and
amortization -- was well below estimates.
Looking to build out its international networks, last month, Discovery agreed to buy a controlling interest in Eurosport International from TF1
Group for approximately $340 million.
MoffettNathanson Research says the combined joint
ventures of networks OWN and The Hub still lost $11 million during the period.
During midday trading, Discovery’s stock was down 2.7% to $80.69. Analysts say Discovery’s
earnings came in a bit under estimates.