BENGALURU: Discovery Communications Inc., (DCI) reported 1.6 percent growth in revenue at $ 6,497 million for the year ended 31 December 2016 (FY-16, current year) as compared to the $6,394 million in the previous year. Overall, DCI reported adjusted OIBDA growth of 1.2 percent in the current year at $2,426 million as compared to $2,398 million in FY-15.
The company’s International Networks segment’s numbers were damped by a 5.5 percent decline in ad revenues to $1,279 million in the current year as compared to $1,353 million FY-15. International Networks Distribution revenue in FY-16 increased 2.7 percent to $1,681 million from $1,637 million in the previous year. International Networks total revenue declined 1.7 percent in FY-16 to $3,040 million from $3,092 million in the previous year.
Adjusted Operating Income before Depreciation and Amortisation (OIBDA) for International Networks in the current year declined 11.8 percent to $848 millon from $961 million in the previous year. Operating Income for International Networks in FY-16 declined 11.7 percent to $597 million from $676 million in the previous year.
The company attributes the decline in revenue to its sale of SBS Networks and currency effects and decline in operating incomes and revenue of its International Networks segment to changes in foreign exchange rates. Changes in foreign currency exchange rates reduced full year International Networks’ revenues and Adjusted OIBDA growth by 6 percent and 8 percent, respectively.
“Discovery’s diversified set of nonfiction, sports and kids’ entertainment brands, and strong strategic positioning continued to drive attractive distribution agreements, helping to deliver solid operating and financial results in 2016,” said DCI president and CEO David Zaslav. “As we begin 2017, we will continue to invest in our premier global IP and brands to nourish fans across all screens, all platforms and all services to drive shareholder value and propel our business for years to come amid the rapidly changing media landscape.
DCI’s US Networks reported 4.9 percent growth in revenue for FY-16 at $3,285 million as compared to $3,131 million in the previous year. US Networks distribution revenue increased 7.1 percent in FY-16 to $1,532 million from $1,431 million in FY-15. US Networks advertising revenue in the current year increased 2.4 percent to $1,690 million from $1,650 million in the previous year.
The company says that Distribution revenue growth was primarily driven by higher rates, partially offset by a slight decline in subscribers. Advertising revenues increased 2 percent primarily due to higher pricing and inventory management, partially offset by lower delivery.
US Networks Operating Income increased 12.4 percent in the current year to $1,195 million from $1,704 million in the previous year. The segment’s adjusted OIBDA increased 8.3 percent in FY-16 to $1,922 million from $1,774 million in FY-15. Adjusted OIBDA due to higher revenues and flat costs says the company.
The company’s reported 0.6 percent growth in its Education and other segment revenue at $174 million in FY-16 as compared to $173 million in the previous year. The segment’s OIBDA in the current year was negative $10 million as compared to $2 million in the previous year. The company says that Education and Other revenues for the full year 2016 were consistent with the prior year. Adjusted OIBDA decreased primarily due to additional investments in the Education business.
