Discovery (DISCA – Free Report) reported third-quarter 2018 earnings of 16 cents per share that plunged 57.9% year over year. Higher restructuring and other charges associated with the integration of Scripps Networks as well as higher tax and interest expenses negatively impacted the bottom line.
Adjusted earnings, excluding the impact of amortization of acquisition-related intangible assets, net of tax was 52 cents per share. Moreover, adjusted earnings excluding restructuring and other charges were 79 cents and included $190 million (or 27 cents per share) of after-tax restructuring and other charges.
Revenues surged 57% year over year to $2.59 billion. Excluding the impact of foreign currency and the Scripps Networks Interactive, and The Enthusiast Network and the Oprah Winfrey Network transactions (collectively called “Transactions”), revenues increased 1%.
On a pro forma combined basis (if the “Transactions” had occurred on Jan 1, 2017), excluding the impact of foreign currency fluctuations, revenues inched up 2% from the year-ago quarter.
Quarter Details
Distribution revenues (44.4% of revenues) increased 30.8% from the year-ago quarter to $1.15 billion. Advertising revenues (52.7%) surged 93.6% to $1.37 billion. Other revenues were $75 million compared with $65 million reported in the year-ago quarter.
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On a pro forma combined basis (if the “Transactions” had occurred on Jan 1, 2017), excluding the impact of foreign currency fluctuations, Distribution and Advertising revenues increased 2% and 4%, respectively. Other revenues plunged 27% year over year.
U.S. Networks (64.6% of revenues) surged 103.4% from the year-ago quarter to $1.67 billion. Excluding the impact of “Transactions”, revenues inched up 2%. On a pro forma combined basis, U.S. Networks’ revenues grew 4%.
