• by Wayne Friedman , November 8, 2007

Discovery Communications Holdings says the revenue at its U.S. networks increased 3% to $475 million in the third quarter mostly from better advertising sales results.

Discovery says its ad revenues during the period shot up 19%, because of higher sell-out rated, better pricing, and better ratings, specifically at Discovery Channel and TLC. Cable affiliate fees only perked up 3%. These results were excluding The Travel Channel which was sold in May to Cox Communications. Operating income at Discovery dropped 13% to $152 million, but cash flow climbed 5% to $195 million.

Discovery says revenue from its International networks climbed 11% to $259 million. Advertising revenue on those networks also increased 19%--primarily due to higher viewership at Discovery's European and Latin American channels.

Discovery was also affected by a restructuring to do its selling of its 103 retail Discovery stores in May of this year. Revenue decreased 15%, or $2 million, with operating cash flow losses decreasing by 74% to $5 million.