• by Wayne Friedman , October 31, 2013

Discovery Communications' third-quarter financial results soared as a result of major growth in its international networks -- mostly in advertising revenue. 

Total international revenues climbed nearly 60%, almost equaling that of business from its U.S. networks, which rose at a slower 10% rate to reach $733 million. Overall revenue climbed 28% to $1.375 billion. Net income gained 24% to land at $255 million during the period.

International advertising revenue rocketed -- more than doubling during the period with a 127% hike to $282 million, while distribution fees climbed 29% higher to reach $322 million.

These gains were largely the result of its acquisition of the Nordic SBS business. Michael Nathanson of MoffettNathanson Research says international core advertising grew 29% and affiliate fee revenues were up 14% -- both as expected.  

“We are the biggest cable player in Western Europe,” says David Zaslav, president/chief executive officer of Discovery, in an earnings phone call. “It’s the new emerging market. In the aggregate it is bigger than the U.S.” He says Discovery has been able to grow 20% in advertising revenues, while the rest of Europe has been a recession.

U.S  advertising revenue grew 12% to $383 million, with distribution fees up 10% to $329 million. Advertising revenues gained from higher delivery and increased pricing.

Unlike other networks, Zaslav says there isn’t much time-shifted viewing with Discovery channels' U.S. networks. “We are not at the top of list that have high DVR shows -- but we are going in that direction,” he notes, especially in regard to OWN network shows .