Silver Spring, MD – August 5, 2020: Discovery, Inc. (“Discovery” or the “Company”) (NASDAQ: DISCA, DISCB, DISCK) today reported financial results for the quarter ended June 30, 2020.
David Zaslav, President and Chief Executive Officer of Discovery said, “Our top priority is the health and safety of our employees as global economies and our offices begin to reopen. I want to thank all of our teams for the exceptional focus and dedication even during these turbulent times that continued to drive outstanding progress for our business, including renewals with four of our largest distribution partners and meaningful cost containment. We generated significant free cash flows in Q2, demonstrating the durability of our business, especially against the backdrop of a historic disruption to the global advertising market due to the impacts of the pandemic. With our significant liquidity cushion and the initial signs of stabilization that we’re seeing in many of our key markets around the world, we are pleased to announce our intention to resume returning capital to shareholders through share repurchases. We are cautiously optimistic about the global outlook for the rest of the year and firmly believe that the long-term prospects for Discovery remain as vibrant as ever.”
Second-Quarter 2020 Financial Highlights
- Total revenues of $2,541 million decreased 12% compared to the prior year quarter, or decreased 11% ex-FX.
- S. distribution revenues increased 7%, or increased 2% excluding certain non-recurring items, and advertising revenues decreased 14%; and
- International distribution revenues decreased 2% and advertising revenues decreased 37%, ex-FX.
- Net income available to Discovery was $271 million and diluted EPS was $0.40 per share.
- Total Adjusted OIBDA decreased 12% to $1,127 million, or decreased 11% ex-FX.
- Adjusted EPS was $0.77 per diluted share.
- Free cash flow was $879 million.
- Total share of viewing across the international portfolio in the second quarter of 2020 improved 4% on average, with strong share growth in India, UK and Italy.
- In the second quarter, Discovery’s portfolio of networks in the U.S. gained more share in primetime than any other TV portfolio in each of our target demos.
- TLC delivered its best quarter in network history and was the top network across all of TV on Sunday nights among W25-54, P25-54 and W18-49, driven by the performance of the ’90 Day Fiancé’ franchise. The network also continues to be the No. 1 destination for women on cable TV in 2020.
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