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MUMBAI:
Discovery has announced that revenues for 2012 was $4.4 billion
increased $319 million, or eight per cent, over 2011 revenues,
primarily driven by 13 per cent growth at International Networks
and 5 per cent growth at U.S. Networks.
Adjusted OIBDA grew 9 per cent to $2,095 million, driven by
an 8 per cent increase at U.S. Networks and a 12 per cent
increase at International Networks. Excluding foreign currency
fluctuations, full year revenues increased 9 per cent and
Adjusted OIBDA increased 12 per cent.
But
net income for the year from continuing operations available
to Discovery stockholders was $954 million, decreasing by
$181 million compared to $1.1 billion a year ago as the strong
operating performance in the current year was more than offset
by the prior year inclusion of a $102 million, net of tax,
gain from the contribution of the Discovery Health network
to the OWN: Oprah Winfrey Network (Own) joint venture as well
as the recognition of foreign tax credits a year ago.
Current
year results also included increased mark-to-market equity-based
compensation, higher interest expense and lower equity earnings
as the Company began recording 100 per cent of OWN’s
net losses in 2012.
Free
cash flow was $1 billion for the year, a decrease of $20 million
from 2011, as better operating performance was more than offset
by higher content investment, cash taxes and interest.
Discovery
president, CEO David Zaslav said, “Discovery’s commitment
to investing in our brands and developing new and diverse
growth opportunities produced another year of strong operating
momentum and financial results in 2012. The appeal of our
content resulted in larger audiences across the globe, enabling
us to deliver consistently healthy advertising growth both
domestically and internationally, while we further leveraged
our valuable programming across emerging distribution platforms
worldwide.
"
At the same time, the strength of our balance sheet allowed
us to make several strategic investments that we believe further
bolster our asset portfolio, while also returning over $1.3
billion to shareholders this year. We head into 2013 with
significant momentum, having just delivered the highest fourth
quarter domestic viewership in our history, and will continue
to invest in strategic growth initiatives so that we can deliver
sustained long-term financial results and shareholder value.”
Fourth
quarter revenues were $1.2 billion increased $94 million,
or eight per cent, over the fourth quarter a year ago, led
by 15 per cent growth at International Networks and four per
cent growth at US Networks. Adjusted Operating Income Before
Depreciation and Amortization (OIBDA) grew by nine per cent
to $545 million, as a 17 per cent increase at International
Networks, despite the adverse impact of foreign currency fluctuations,
and a 7 per cent increase at US Networks, more than offset
strategic transaction related costs recognised in the quarter.
Excluding foreign currency fluctuations, fourth quarter revenues
increased 9 per cent and Adjusted OIBDA increased 11 per cent.
Fourth
quarter net income from continuing operations available to
Discovery stockholders of $224 million decreased by $112 million
compared to $336 million for the fourth quarter a year ago
as the strong operating performance and improved equity earnings
in the current year were more than offset primarily by higher
taxes and increased mark-to-market equity-based compensation.
The higher taxes were largely due to foreign tax credits recognized
a year ago as well as an increase in tax reserves in the fourth
quarter of 2012.
Free
cash flow was $304 million for the fourth quarter, a decrease
of $20 million from the fourth quarter of 2011, as improved
operating performance was more than offset by higher content
investment, interest and cash taxes. Free cash flow is defined
as cash provided by operating activities less acquisitions
of property and equipment
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