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Discovery Communications’ profit misses Wall Street view

Discovery Communications Inc. reported a decline greater than expected quarterly earnings, eclipsing higher advertising revenues of the cable chan...

 

Discovery Communications' profit misses Wall Street view

Discovery Communications Inc. reported a decline greater than expected quarterly earnings, eclipsing higher advertising revenues of the cable channels.

Discovery

said Thursday that fourth-quarter net income fell 33 percent to $ 224 million, or 61 cents per share. Analysts on average expected 76 cents per share, according to Thomson Reuters I / B / E / S.

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Discovery fell 2.4 percent to $ 69.78 in morning trading.

The company attributed the decline to higher taxes, and stock-based compensation expense as a result of acquisitions, such as Germany, ProSiebenSat.1 Media AG 12 Nordic TV stations for $ 1.7 billion.

However, the company’s cable networks include Discovery Channel, TLC and Animal Planet, said total sales rose 8 percent to $ 1.2 billion, in line with analysts’ expectations .

Discovery

predict 2013 earnings of 5.58 billion to 5.70 billion euros. Analysts expected $ 5.43 billion.

society entertainment mogul Oprah Winfrey in cooperation with private network – a major undertaking and expensive city – is in full swing, officials said during a call with analysts

.

“Oprah did a great job,” said Discovery CEO David Zaslav. “Everything is moving in the right direction.”

Winfrey, who the day televised debates dominated for decades, trying his winning formula on the cable to replicate. OWN marked a two-part interview with disgraced cyclist Lance Armstrong, but not to his own record breaking viewer with the most watched show with an interview with the family of the deceased Whitney Houston.

viewers were a popular subject of the appeal. Executives and analysts note that some of Discovery most talked about shows like “Gold Rush”, “Finding Bigfoot” and “Breaking Amish” not much money to make advertisers as traditional broadcasters for their programs.

“We’re always the argument that we have a wider audience and we need more money,” said Zaslav.

In general the rate

advertisement for a commercial exploitation Discovery is about 33 percent lower than what your rivals, he said.

Advertising revenue increased 9 percent

to $ 397 million in the fourth quarter of the American chains of society and increased 16 percent to $ 185 million in global networks of cables.

“If anything, people expect to exceed them,” Macquarie Research analyst Amy Young said on advertising revenue.

Discovery

said it expects advertising revenues to grow at a rate to a high rate in the first quarter.

One area where discovery remains away is an initiative known as TV Everywhere, which allows cable subscribers to access content on multiple devices, such as smartphones and tablets. The company is looking at how to assess such agreements.

“The biggest risk to the ecosystem is that distributors like Netflix online videos a better quality product than traditional television,” said Gabelli &, Co analyst Brett Harriss. “TV Everywhere is a way to respond, and Discovery takes a more moderate approach.”