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Discovery Sees Q3 Profit Rise Despite Slump in Ad Revenue

Discovery Sees Q3 Profit Rise Despite Slump in Ad Revenue

Discovery Sees Q3 Profit Rise Despite Slump in Ad Revenue

Discovery said third-quarter profit increased despite a slump in ad revenue at both its U.S. and international operations, as the company enjoyed a tax benefit and relied on cost-cutting maneuvers to navigate through conditions caused by the coronavirus pandemic.

The owner of the TLC, Food Network, HGTV and Discovery cable outlets said revenue fell 4% — with overall advertising sales down 8% — but cut down on expenses and narrowed tax expenses from the year-earlier period. That helped buoy a 15% increase in the net income available to the company, which rose to $300 million, or 44 cents a share, compared with $262 million, or 35 cents a share, in the year-earlier quarter.

“In the midst of macroeconomic uncertainty with the ongoing COVID pandemic, as well as the continuing evolution of our industry, we remain focused on positioning Discovery for long-term growth and shareholder value creation through the execution of our strategic priorities, including our next generation initiatives,” said David Zaslav, chairman and CEO of the company, in a prepared statement.



 

 

More to come….

Written by Oli Coleman

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