DISCOVERY COMMUNICATIONS REPORTS FIRST QUARTER 2014 RESULTS

(Silver Spring, MD) First Quarter 2014 Financial Highlights:

  • Revenues increased 22% to $1,411 million
  • Adjusted OIBDA increased 5% to $525 million
  • Free cash flow increased 103% to $213 million
  • Repurchased 3.4 million shares of common stock for $266 million

Silver Spring, Maryland – May 6, 2014: Discovery Communications, Inc. (“Discovery” or the “Company”) (NASDAQ: DISCA, DISCB, DISCK) today reported financial results for the first quarter ended March 31, 2014.

David Zaslav, Discovery’s President and Chief Executive Officer, said, “Discovery’s strong organic growth continued during the first quarter as our unparalleled global reach and sustained investment in diverse and engaging content allowed us to capitalize on the growing demand for pay-tv programming worldwide.  The larger audiences and consistent market share gains we are delivering are driving sustained financial results, even as we further invest in our platforms and integrate strategic acquisitions that will enhance our long-term growth prospects.  As we look to the remainder of 2014, leveraging the significant opportunities across our existing asset portfolio remains our priority so we can maintain our financial momentum while further building long-term shareholder value.”

First Quarter Results

First quarter revenues of $1,411 million increased $255 million, or 22%, over the first quarter a year ago, led by 51% growth at International Networks and 3% growth at U.S. Networks.  Adjusted Operating Income Before Depreciation and Amortization(1) (“OIBDA”) increased 5% to $525 million, as International Networks were up 18%  and U.S. Networks were up 2%. Excluding the impact of the SBS Nordic acquisition(2),foreign currency fluctuations and digital licensing agreements, total Company revenues increased 8% and Adjusted OIBDA increased 6%.

First quarter net income available to Discovery Communications, Inc. of $230 million ($0.66 per diluted share)(3) was in-line with last year’s net income of $231 million ($0.63 per diluted share), as the strong operating performance in the current year and lower stock based compensation expense were more than offset by increased amortization associated with the purchase price allocation for the SBS Nordic transaction and higher other income in the prior year, primarily due to a $92 million gain associated with the consolidation of Discovery Japan.  Adjusted Earnings Per Diluted Share(4) (“Adjusted EPS”), which excludes the impact of the amortization of acquisition related intangible assets, was $0.75 per diluted share in the first quarter of this year compared with $0.63 per diluted share in the same period a year ago.

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