Silver Spring, MD – February 27, 2020: Discovery, Inc. (“Discovery” or the “Company”) (NASDAQ: DISCA, DISCB, DISCK) today reported financial results for the quarter and full year ended December 31, 2019.
David Zaslav, President and Chief Executive Officer of Discovery said, “2019 was a year of promises made and promises delivered. We achieved more than $3 billion of free cash flow and brought leverage down to the low end of our target range of 3-3.5x net debt to Adjusted OIBDA. Our differentiated local content strategy and global scale, coupled with our unique free cash flow conversion profile, provide distinct financial flexibility that allows us to adapt to changing media consumption habits. Our Board’s confidence in our strategic direction is highlighted by the recent authorization to repurchase up to an additional $2 billion of our shares.”
Fourth Quarter 2019
- Total revenues increased 2% to $2,874 million, or increased 4% ex-FX.
- S. advertising and distribution revenues increased 1% and 5%, respectively; and
- International advertising and distribution revenues increased 5% and 10%, respectively, ex-FX.
- Net income available to Discovery, Inc. increased to $476 million and diluted EPS increased to $0.67 per share.
- Adjusted OIBDA decreased 8% to $1,105 million, or decreased 6% ex-FX.
- Adjusted EPS increased to $0.98 per diluted share.
- Free cash flow increased 27% to $1,132 million.
- The Company repurchased 12 million Series C shares for $337 million, at an average price of $29.04 per share.
Full Year 2019
- Total revenues increased 6% to $11,144 million, or increased 2% on a pro forma combined ex-FX basis.
- Net income available to Discovery, Inc. increased to $2,069 million and diluted EPS increased to $2.88 per share.
- Adjusted OIBDA increased 12% to $4,671 million, or increased 7% on a pro forma combined ex-FX basis.
- Adjusted EPS increased to $3.69 per diluted share.
- Free cash flow increased 28% to $3,110 million.
- The Company repurchased 23 million Series C shares for $637 million, at an average price of $27.49 per share.
- In 2019, HGTV and Food Network launched in more than 30 new countries and territories combined as the Company continued to execute on its strategy to grow the global reach of the Scripps Networks.
- Total share of viewing in 2019 for our top 10 international markets increased 2%, on average.
- Established strong foothold across existing and new direct-to-consumer platforms in Europe, including Dplay in 10 markets, TVN Player in Poland, and Joyn in Germany.
- Discovery was the No. 1 most-watched pay TV portfolio in the U.S. among women 25-54 and 18+ for both primetime and total day in 2019.
- TLC delivered its best year ever globally, improving both international share and viewership by 8%, and in the U.S., TLC was the fastest growing ad-supported cable network among women 25-54 and 18-49, with its best primetime performance in 16 years.
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