Discovery Inc. reported a massive 57% year-over-year revenue increase during the third quarter thanks largely to its acquisition of Scripps Networks.
The company took in approximately $2.6 billion during the quarter. But after excluding the Scripps, Motor Trend and OWN acquisitions, along with foreign currency impacts, Discovery’s quarterly revenues rose only 1%. The company said a 3% increase in International Networks and a 2% increase in U.S. Networks were partially offset by the sale of its education business.
Adjusted OIBDA rose 82% to more than $1 billion. After factoring out acquisitions and foreign currency impacts, adjusted OIBDA rose 9%. Third-quarter net income totaled $117 million, down from $218 million during the year-ago quarter, due to higher restructuring and other charges associated with the integration of Scripps Networks.
"We are very pleased with how far we've come in the eight months since we closed our merger with Scripps Networks, highlighted by the acceleration of synergy generation and strong Adjusted OIBDA growth in the third quarter,” said Discovery CEO David Zaslav in a statement.
U.S. Networks revenues totaled $1.67 billion during the quarter, far ahead of the $823 million posted during the same quarter last year. Again, without the benefit of the acquisitions, revenues increased 2%, with an 8% increase in advertising revenues being partially offset by a 2% decrease in distribution revenues and a 29% decrease in other revenues. U.S. Networks adjusted OIBDA increased 88% (6% when factoring out the acquisitions) to $901 million.
International Networks revenues increased 15% (3% when factoring out the acquisitions) to $916 million. International Networks adjusted OIBDA increased 41% to $254 million. Even after factoring out the acquisitions and foreign currency impacts, adjusted OIBDA still rose 21%.