Q1 Cash Flow, Revenues Up at Discovery

May 8, 2008  •  Post A Comment

Discovery Communications’ U.S. Networks unit racked up an 18% increase in operating cash flow on a 3% increase in revenues during the first quarter, Discovery Holding Co. reported Thursday.
Excluding the results of Travel Channel, which was sold last year to Cox Communications, revenues rose 13% to $491 million, while operating cash flow rose 24% to $247 million.
Discovery said that, excluding Travel Channel, ad revenues grew 14% due to higher cash sellouts and higher scatter market rates across most of its networks.
The company said digital media revenues were up 113%, due mainly to the acquisitions last year of Treehugger.com and HowStuffWorks.com.
“Audience delivery at Discovery’s fully distributed U.S. networks (Discovery Channel, TLC and Animal Planet) was generally lower in the first quarter of 2008, compared to the same period a year ago, as new creative management began to implement their brand, development and programming strategies, “ the company said. “Additional marketing investment is expected on a go-forward basis to support original programming premieres across the portfolio, including Discovery Channel, Animal Planet and Planet Green in the second and third quarters of 2008.”


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