Factual
Q2-16: Distribution, other revenue push Discovery Communications revenue up 3.3 percent
BENGALURU: An increase of $39 million (4.9 percent increase) in Distribution and an increase of $17 million (26.2 percent increase) of ‘Other’ revenue boosted Discovery Communications Inc., (Discovery) revenue by 3.3 percent for the quarter ended 30 June 2016 (Q2-16, current quarter) vis-à-vis the corresponding year ago quarter. Discovery reported total revenue of $1,708 million in Q2-16 as compared to $1,654 million in Q2-15.
Discovery reported Distribution revenue of $813 million in the current quarter as compared to $775 million in the corresponding year ago quarter. Advertising revenue in Q2-16 was flat y-o-y (declined by $1 million or 0.1 percent) at $813 million as compared to $814 million in Q2-15. ‘Other’ revenue in Q2-16 was $82 million as compared to $65 million in the corresponding year ago quarter.
“Discovery posted a solid quarter of growth and financial results by investing in premium and diversified content that fuels the passion of superfans on pay-TV, free-to-air, direct-to-consumer and digital platforms. Our differentiated portfolio of nonfiction, sports and children’s content in more than 220 markets positions Discovery for continued growth and shareholder value creation in the months and years to come,” said Discovery president and CEO David Zaslav.
Segment results
Discovery reports numbers from three segments – US Networks, International Networks, and Education and ‘Other’
US Networks
US Networks revenue in Q2-16 increased 7.2 percent to $873 million as compared to $812 million in Q2-15. Adjusted OIBDA in the current quarter from this segment increased 9.7 percent to $544 million (62 percent margin) from $496 million (61 percent margin) in Q2-15.
Distribution revenue from US Networks increased 8.1 percent in Q2-16 to $386 million from $357 million in Q2-15. US Networks Advertising revenue increased 5.4 percent in the current quarter to $471 million from $447 million in Q2-15. US Networks ‘Other’ revenue in Q2-16 increased 60 percent y-o-y to $16 million from $10 million.
Discovery says that US Networks Distribution revenue growth was primarily driven by higher rates, partially offset by slight declines in subscribers. Advertising revenues increased primarily due to higher pricing and inventory management, partially offset by lower delivery.
International Networks
Revenue from International Networks segment in Q2-16 declined 1.4 percent to $790 million from $819 million in the corresponding year ago quarter. Adjusted OIBDA from the segment in the current quarter declined 6.4 percent to $249 million from $266 million in Q2-15.
International Networks Distribution revenue increased 2.2 percent to $427 million in Q2-16 as compared to $418 million in Q2-15. International Networks Advertising revenue in Q2-16 declined 6.8 percent to $342 million from $367 million in Q2-15. International Networks ‘Other’ revenue in the current quarter increased 31.3 percent to $21 million from $16 million.
Discovery says changes in foreign currency exchange rates reduced second quarter international revenues and Adjusted OIBDA growth by 4 percent and 10 percent, respectively. Excluding currency effects and the impact of SBS Radio, total revenues were up 8 percent. Distribution revenues, excluding the impact of currency effects, grew 10 percent mostly due to higher affiliate rates in Northern Europe and CEEMEA as well as increased affiliate rates and subscribers in Latin America. Advertising revenues, excluding the impact of SBS Radio and currency effects, were up 5 percent, primarily due to higher volume and ratings in Southern Europe as well as higher pricing, ratings and volume in CEEMEA, partially offset by a decline in Northern Europe due to the impact of Brexit and lower ratings.
Education and other
Education and other revenue in Q2-16 increased 15 percent to $46 million from $40 million in Q2-15. The segment reported slightly higher negative adjusted OIBDA (reported a higher operating loss) at $3 million in the current quarter as compared to negative adjusted OIBDA of $2million in Q2-15.
Discovery says Education and Other revenues for the second quarter increased by $6 million primarily due to higher external production deliveries at the Studios production business. Adjusted OIBDA remained relatively consistent primarily due to higher external Studios production deliveries, offset by additional investments in Education Techbooks.
MUMBAI: India’s most famous hot seat is about to welcome an unlikely first-timer. For the first time on Hindi general entertainment television, industrialist Kumar Mangalam Birla will appear on Kaun Banega Crorepati, the iconic quiz show hosted by Amitabh Bachchan.
The special episode marks a rare meeting point of boardroom heft and prime-time television, bringing one of India’s most influential business leaders face to face with the country’s most enduring screen legend. It is a crossover that blends intellect, leadership and popular culture, all under KBC’s familiar spotlight.
Birla’s appearance dovetails neatly with the show’s current theme, Jahaan Akal Hai, Wahan Akad Hai, which celebrates the confidence that comes from clarity of thought and knowledge. His presence lends weight to the idea that sharp thinking and conviction are as vital in life as they are in the quiz chair.
In a thoughtful conversation with Bachchan, Birla shared an upbeat view of India’s economic journey, pointing to the nation’s rapid growth and the scale of opportunity opening up across industries and communities. He spoke of momentum, ambition and a future shaped by enterprise and ideas.
The episode is not all serious talk. In lighter moments, Birla confessed his long-standing admiration for Bachchan, calling him his favourite actor and admitting to a touch of nervousness at answering questions in front of the Shahenshah himself. The candour adds a human touch to a man more often seen in headlines than on television sets.
The special episode airs on Monday, 29 December at 9.00 pm on Sony Entertainment Television and Sony LIV.
