| MUMBAI:
Global media firm Discovery Communications has announced its results for 2005.
DCI's revenue for the fourth quarter increased by 11 per cent to $772 million
and 13 per cent in 2005 to $2.7 billion. DCI's operating cash flow increased by
one per cent in the quarter to $184 million and four per cent in 2005 to $687
million. In the US, its revenue
increased by eight per cent in the quarter to $444 million and nine per cent in
2005 to $1.7 billion. Operating cash flow increased by six per cent in the quarter
to $148 million and eight per cent in the year to $643 million. The growth in
revenue was due to increases in distribution revenue for both periods combined
with a five per cent decrease in ad revenue in the quarter and flat ad revenue
for the year. Net distribution revenue increased by 24 per cent in the
quarter and 22 per cent for 2005 as the US networks had a 10 per cent increase
in paying subscribers in 2005 combined with contractual rate increases. Operating
expenses increased by eight per cent in the quarter and 10 per cent in the year
due to an increase in programming expense as the company continued its investment
across all US networks in original productions and series and specials.
Internationally, its revenue
increased by 25 per cent in the quarter to $214 million and by 24 per cent in
the year to $731 million. Operating cash flow increased by 27 per cent in the
quarter to $33 million and 10 per cent for the year to $109 million. The increases
in revenue were due to growth in distribution and advertising revenue. Net advertising
revenue increased by 26 per cent in the quarter and 28 per cent in the year primarily
due to higher viewership in the UK and an increased subscriber base in the UK
and Europe. Net distribution revenue increased by 29 per cent in the quarter
and 25 per cent in the year due to increases in paying subscription units in Europe
and Asia combined with contractual rate increases in certain markets. Operating
expenses increased by 25 per cent in the quarter and 27 per cent for 2005 due
to an investment in the lifestyles category designed to develop and grow that
market opportunity combined with an expected increase in headcount as the business
expands. | 
