DISCOVERY, INC. REPORTS FIRST-QUARTER 2020 RESULTS

Silver Spring, MD – May 6, 2020: Discovery, Inc. (“Discovery” or the “Company”) (NASDAQ: DISCA, DISCB, DISCK) today reported financial results for the quarter ended March 31, 2020.

David Zaslav, President and Chief Executive Officer of Discovery said, “The world is facing an unprecedented challenge and I want to express our profound gratitude to the medical workers and front-line responders who are risking their personal safety every day during this fight with COVID-19. I am also enormously proud of Discovery’s employees who have pulled together and stepped up with resilience, heart and creativity. They continue to nourish our viewers at a time when our trusted brands and beloved personalities are a unique source of comfort and familiarity. As we navigate through the remainder of 2020, our priority remains on the well-being of our employees, clients, customers, and production partners. Furthermore, we will continue to focus on maintaining a healthy balance sheet with robust liquidity and investing in our businesses to position ourselves for long-term growth amid the changes in the pay-TV landscape.”

First-Quarter 2020 Financial Highlights

  • Total revenues decreased 1% compared to the prior year quarter to $2,683 million, and were flat ex-FX.
  1. U.S. advertising revenues were unchanged and distribution revenues increased 2%; and
  2. International advertising revenues were unchanged and distribution revenues increased 1%, ex-FX.
  • Net income available to Discovery was $377 million and diluted EPS was $0.55 per share.
  • Total Adjusted OIBDA decreased 4% to $1,113 million, or decreased 3% ex-FX.
  • Adjusted EPS was $0.87 per diluted share.
  • Free cash flow was $230 million.
  • The Company repurchased 19 million Series C shares for $523 million at an average price of $26.87 per share.

Operational Highlights

  • Discovery and Amazon announced an expanded collaboration that will provide a complimentary one-year subscription to Food Network Kitchen to all Amazon Fire TV and Fire Tablet customers in the U.S.
  • Total share of viewing across the international portfolio in the first quarter of 2020 increased 4% on average.
  • Discovery was the most-watched pay-TV portfolio in the U.S. among P2+ audiences in the first quarter of 2020, while in primetime, Discovery was the most-watched pay-TV portfolio among key demos.
  • TLC was the No. 1 cable network among women 25-54, 18-49, and 18-34, and delivered its best primetime performance ever among women 25-54 and its best in 17 years among P25-54. March 2020 marked 11 consecutive months of year-over-year primetime growth for TLC among women 25-54.

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DISCOVERY, INC. REPORTS FIRST-QUARTER 2020 RESULTS

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