• by David Goetzl  @dgoetzl, August 14, 2006

After two straight quarters in which ad revenue declined for its U.S. networks, Discovery Communications eked out an increase in the second quarter. Ad dollars inched up 1 percent compared to a year ago--slow growth partly attributable to lower sellout rates at some of its 15 domestic networks.

The increase comes after Discovery saw a 6 percent decline in ad revenue in the first quarter versus the year before, following a 5 percent drop in the fourth quarter compared to the prior year.

There has been some speculation that the cable ad sales market has lost some steam, but Discovery's second-quarter increase--although slight--could provide some contrary evidence.

The company's ad revenue was flat for 2005 compared to 2004.

The results come from Discovery Holding Company, which owns 50 percent of Discovery Communications and is led by John Malone.

In the second quarter, improved ratings at Discovery's two largest networks, Discovery Channel and TLC, propelled the small dollar increase, according to Discovery Holding.

In the second quarter, overall revenue for Discovery's U.S. networks--the company owns 15 and manages two others--rose 9 percent to $498 million versus the year before. Wider distribution, particularly an 11 percent jump in paying subscribers, appears to have spearheaded the growth.