Discovery Profits Hit By Scripps Merger Costs As International Revenues Grow 5% In Q2
The cost of integrating Scripps Networks into its business hit Discovery’s profit in the second quarter, but growth from international revenues helped the global factual broadcaster.
Net income in the three months to the end of June was $216 million, compared to $374M in the second quarter of 2017, the company reported today. It said that improved operating results were “more than offset” by higher restructuring and other charges associated with the integration of Scripps Networks.
Discovery closed its $14.6B acquisition of Food Network and HGTV owner Scripps Networks Interactive in March.
Revenue in the quarter hit $2.85 billion. Excluding the impact of foreign currency fluctuations and the transactions relating to Scripps Networks Interactive, Motor Trend Group and the Oprah Winfrey Network, revenues remained consistent, with a 5% increase in International Networks, offset by a 1% decrease in U.S. Networks and the sale of the education business on April 30, 2018.
“We delivered solid financial results in our first full quarter as a combined company and continued to make great progress with our integration of Scripps Networks Interactive and our pivot to digital, mobile and direct to consumer products and services,” said David Zaslav, Discovery’s president and CEO. “As the global leader in real life entertainment, we are uniquely positioned in the media marketplace to deliver long-term value for our passionate superfans, shareholders and business partners around the world.”
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