Discovery's non-US operations show 7% profit rise

by Tristan O'Carroll, mediaweek.co.uk 04-Nov-09, 10:45

LONDON - Discovery's non-US TV channels posted a 2% fall in revenue in Q3, although pre-tax profits increased 7%, to $110m, following a reduction in costs.

Discovery Communications, which owns Discovery Networks UK, said its non-US or international networks' revenue for the third quarter decreased 2% to $293m, due to what it termed an "unfavourable impact from foreign currency fluctuations". Within this figure, it earned £80m in ad revenue, down 4% year on year.

It did not provide any revenue or profit breakdown for its UK operations.

Excluding the impact of foreign currency fluctuations, revenue in Q3 increased 6%, driven by a 9% ad revenue rise, primarily from its European operations.

Worldwide, across all of Discovery's operations, including TV channels and merchandising divisions, revenues of $854m were up slightly compared with the third quarter a year ago. Pre-tax profits increased 17%, to $364m.

David Zaslav, Discovery president and chief executive, said the company remains focused on strengthening its programming while increasing efficiencies through "targeted reductions in our overall cost structure".

Last month, Sky Media retained the ad sales contract for Discovery Networks UK.

Discovery awarded a four-year deal to Sky Media, the ad sales division of BSkyB, starting from 1 January. Sky Media has been its ad sales partner since 2002.