| MUMBAI:
Discovery has posted a revenue of $817 million for the first quarter of FY'10,
an increase of $8 million over the first quarter a year ago. Five per cent growth
at US Networks and 23 per cent growth at Commerce, Education and Other, aided
primarily by non-recurring revenue, was offset by a four per cent decline at International
Networks. This
was due to the result of a $32 million unfavorable impact from foreign currency
fluctuations. Adjusted Operating Income Before Depreciation and Amortisation (OIBDA)
grew by nine per cent to $329 million, driven by an increase of seven per cent
at US Networks and an increase of 20 per cent at International Networks. First
quarter net income of $119 million increased by $85 million compared to $34 million
for the first quarter a year ago. The increased results primarily reflect the
$28 million growth in Adjusted OIBDA, a $40 million decline in income tax expense,
and a $24 million increase in other non-operating income, partially offset by
a $32 million expense in the current year related to the unrealised change in
the fair value of the mark-to-market share-based compensation which was a benefit
of $36 million in the first quarter a year ago. Discovery
president and CEO David Zaslav said, “The growth Discovery delivered in the
first quarter despite economic and foreign currency headwinds demonstrates the
strength of our business model. Our stable and growing distribution revenue provides
a unique resiliency in the face of economic hurdles. "In
the first quarter, this distribution strength was complemented by domestic advertising
revenue growth as we capitalized on increased ratings across the portfolio. The
durability of our revenue streams, combined with our ability to control spending,
translated into Adjusted OIBDA growth of nine per cent this past quarter, and
gives us confidence that we can continue to expand operating margins in today’s
challenging environment.”
Free
cash flow was $120 million for the first quarter, an increase
of $75 million from the first quarter of 2008.
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