Ads Boost Discovery Communications’ Revenue in Q3

Parent of Discovery Channel, TLC, Animal Planet Posts Strong Q3

Discovery Communications Holding saw advertising revenue growth for both its U.S. and international networks in the third quarter.

Discovery -- which owns nonfiction networks such as Discovery Channel, TLC and Animal Planet -- saw consolidated third-quarter revenue increase 6% to $745 million on a 9% rise in advertising revenue while distribution revenue was flat. Operating cash flow increased 13% to $231 million and operating income dropped 13% to $152 million.

Revenue generated from U.S. networks increased 3% to $475 million on advertising-revenue growth of 19% partially offset by the exclusion of revenue from Travel Channel, which was divested in May. Operating cash flow from the segment was up 5% to $195 million.

The international networks generated $259 million in revenue, 11% higher than a year ago, on a 19% gain in advertising and 6% rise in distribution revenue, as well as favorable foreign-exchange rates. Operating cash flow increased 8% to $41 million.

Discovery Communications is a subsidiary of Discovery Holding.