• by Wayne Friedman , May 9, 2017

Discovery’s recent quarter U.S. domestic revenues were virtually flat versus the same period a year ago; its stock drifted lower on Tuesday, stemming from somewhat less-than-expected financial results.

Discovery grew 1% to $405 million, with international advertising growth down 1% to $282 million — but up 3% when looking at constant currency comparisons.

Boosting the overall revenue picture, Discovery U.S. distribution revenues -- fees from pay TV providers -- rose 5% to $408 million, with international revenues adding on 9% to hit $447 million.

While distribution revenue came from mostly higher rates, the network says this was “partially offset by a slight decline in subscribers.”

Todd Juenger, media analyst, Bernstein Research, notes the more global-looking Discovery is not getting the big international spikes in revenues -- especially from advertising results --- that it did a few years ago.

Juenger says, “U.S. revenues point to low-singles, with mid-single affiliate and ‘flattish’ advertising (risks on the horizon from cord-cutting, audience trends and softening advertising demand).”

Discovery isn’t alone. Many large U.S.-based TV network companies have seen slightly down-to-flat ad results. At best, some have earn small single-percentage rises.

Bernstein Research notes for the first-quarter Nielsen viewer ratings for those 2+ were down 1%, when looking at C3 metric -- average commercials ratings plus three days of time shifting -- and down 4% among 18-49 viewers.

Overall, Discovery revenues grew 3% to $1.6 billion with net income down 18% to $215 million.

The company says there was “ higher losses from equity investees, primarily due to the timing of our solar investments, which had a negative impact on net income in the first quarter but are expected to have a positive impact on net income for the full year.”

Mid-day Tuesday trading of Discovery was down 4% to $26.11.