Television

Lower Ad revenue curtails Discovery Communications Q3-16 numbers

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2016/11/02/Discovery-Communications-800x800.jpg?itok=bETrYzqB

BENGALURU: An overall 4.1 per cent decline in advertising revenue for the quarter ended 30 September 2016 (Q3-16, current quarter) vis-à-vis the corresponding year ago quarter resulted in flat revenue for Discovery Communications Inc., (Discovery). The company reported overall revenue of $1,556 million for the current quarter versus $1,557 million in Q2-15. Overall Advertising revenue declined in Q3-16 to $670 million as compared to $699 million in Q2-15.

Discovery’s other major revenue stream – Distribution, reported 3.9 per cent year-over-year (y-o-y) increase in the current quarter at $806 million as compared to $770 million. Discovery’s ‘Other’ revenue declined 2.4 per cent y-o-y to $80 million from $82 million.

Operating income declined 9.3 per cent y-o-y in Q3-16 to $458 million from $505 million. The company’s adjusted Operating Income before Depreciation and Amortisation (OIBDA) declined 2.4 per cent in the current quarter to $562 million from $576 million.

Geographical breakup:

US Networks

Discovery’s US Network’s revenue increased 1.5 per cent y-o-y in Q3-16 to $793 million from $781 million.  US Networks adjusted OIBDA improved 3.4 per cent y-o-y in Q3-16 to $458 million from $443 million.

US Networks distribution revenue in the current quarter increased 6.7 per cent y-o-y to $458 million versus $443 million. US Networks advertising revenue declined 3.4 per cent y-o-y to $396 million in the current quarter from $410 million. US Networks ‘Other’ revenues in Q3-16 increased 14.3 per cent y-o-y to $16 million from $14 million.

Discovery says that Distribution revenue growth was primarily driven by higher rates, partially offset by a slight decline in subscribers. Advertising revenues decreased primarily due to expected ratings declines, partially offset by higher pricing and inventory management.

US Networks Operating expenses decreased 1 per cent mainly due to lower content amortization, partially offset by higher marketing costs. Adjusted OIBDA increased due to higher revenues and lower operating expenses.

International Networks

Discovery’s International Revenue in Q3-16 declined 2.7 per cent to $720 million from $740 million.  International Networks OIBDA declined 16.1 y-o-y per cent in the current quarter to $183 million from $218 million.

International Networks Distribution revenue increased 1.4 per cent y-o-y in Q3-16 to $425 million from $419 million. International Networks Advertising revenue in the current quarter declined 5.5 per cent y-o-y in the current quarter to $273 million from $289 million. International Networks ‘Other’ revenue in Q3-16 declined 31.25 per cent y-o-y to $22 million from $32 million.

The company says that changes in foreign currency exchange rates reduced third quarter International revenues and adjusted OIBDA growth by 5 per cent and 7 per cent, respectively. Distribution revenues, excluding the impact of currency effects, grew 8 per cent mostly due to higher affiliate rates in Latin America, Northern Europe and CEEMEA as well as higher volume in Latin America.

Advertising revenues, excluding the impact of currency effects, declined, primarily due to lower ratings and pricing in Northern Europe, partially offset by higher volume in Southern Europe. Other revenues declined primarily due to lower Eurosport sub-licensing revenues.

Education and Other

‘Education and Other’ revenues increased 19.4 per cent y-o-y to $43 million in the current quarter from $36 million. ‘Education and Other OIBDA improved by 80 per cent to a loss of $1 million from a loss of $5 million.

The company says that Education and Other revenues for the third quarter increased by $7 million primarily due to higher production deliveries at the Studios production business and increased international revenues at the Education business. Adjusted OIBDA improved primarily due to higher revenues, partially offset by additional investments in the Education business.

Other Developments

On October 13, 2016, Discovery announced a plan to contribute $100 million and its digital network Seeker and production studio SourceFed in exchange for a 39 per cent minority interest in a new holding company, Group Nine Media. Group Nine Media includes digital companies Thrillist Media Group, Now This Media, and The Dodo. Discovery has the option to buy a controlling stake in Group Nine Media in the future. The transaction is expected to close in the fourth quarter of 2016, subject to customary closing conditions.

Company speak

“While we faced challenging but expected headwinds this quarter, Discovery is well positioned for long-term growth driven by our well-defined global brands, differentiated content and favourable distribution agreements,” said Discovery president and CEO David Zaslav, “We have continued to strengthen and maximize our traditional pay-TV offering with robust new programming while aggressively exploiting new opportunities to leverage our content across numerous digital platforms around the world. Amid an ever shifting global media ecosystem, Discovery is evolving to reach more consumers on more screens and platforms than ever before."

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/22/mnx.jpg?itok=IFsOhyA_
Binge on your favourite movies with 'Anthology Weekends' on MNX

Mumbai: When it comes to movies, we all have our favourites we love to binge watch! Offering its viewers their favorite movie franchise, MNX, the new age Hollywood channel for Young India from Times Network, presents a series of cult classics titled ‘Anthology Weekends’, every weekend, until March...

Television TV Channels English Entertainment
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/22/shipra.jpg?itok=72K021J0
Make your snack time a lip-smacking affair with Chef Shipra Khanna

Crack the code to snacking this February as premium lifestyle channel Living Foodz is set to launch ‘Snack in the Box’ with Chef Shipra Khanna. Starting February 26, the show marks Chef Shipra’s debut on the channel and will unravel snack recipes with a twist!

Television TV Channels Factual & Documentary
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/22/star.jpg?itok=uVnQqI3i
Four Star India channels again among top 10 in across genre list

Four channels from Star India once again made it to Broadcast Audience Research Council’s (BARC) weekly list of top 10 channels across genres (all India – U+R: 2+ individuals) for week 7 of 2018 (Saturday, 10 February 2018 to Friday, 16 February 2018). The four channels with their ranks in week...

Television TV Channels Viewership
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/22/gecccc.jpg?itok=PJ21Qcde
Star Plus third in urban market: BARC week 7

Star Bharat emerged as the leader in the Hindi GEC (U+R) region and Zee Anmol shifted to second slot, according to Broadcast Audience Research Council (BARC) all India data for week 7 of 2018.

Television TV Channels Viewership
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/22/volley.jpg?itok=qVnBAfj7
Volleyball Federation of India announces partnership with Baseline Ventures

The Volleyball Federation of India (VFI) has announced a ten year partnership with sports marketing and branding firm Baseline Ventures to promote and build Indian volleyball.

Television TV Channels Sports
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/22/eros.jpg?itok=Wl6o1moW
Eros Intl's Deshpande hints at group rejig, likens RIL tie-up to 'blank canvas'

The Eros group, which includes an India-listed company with the parent Eros International plc. listed on NYSE, will soon start the process of simplifying the organisational structure to realign shareholders interest after an announcement that Reliance Industries Ltd. would be investing in the...

Television Production House Film Production
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/22/karan.jpg?itok=h5Zv2RJa
Discovery Jeet postpones 2 show launches to late March

The newly launched general entertainment channel, Discovery Jeet has planned to halt the launch of two yet to be released shows Gabru – Hip Hop Ke Shehzaade and Man Vs Wild with Sunny Leone.

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/22/ipl18.jpg?itok=8l-fGkZA
Star India bags 5 new advertisers for IPL 2018

MUMBAI: Star India is building up on its advertiser list for IPL 2018 with the announcement of five new brand additions, taking its total portfolio to 16. New names include Colgate, Amul, MakeMyTrip, Parle Products and Vu TV.

Television TV Channels Sports
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/22/motu.jpg?itok=3ruwYKEU
Animation sees an uptick despite expensive production

MUMBAI: When it comes to popular content on TV in India, general entertainment channels (GEC) lead the way. Primetime shows are most watched, most-earning and most talked about since the early years of the saas-bahu serials. Animation as a genre is sidelined to the kids’ channels but producing it...

Television TV Channels Kids

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories