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….