Discovery's fiscal rev up 12% to $4.2 bn

MUMBAI: US non fiction media company Discovery has reported full year ended 2011 revenues of $4.2 billion, a 12 per cent jump over 2010 revenues, primarily driven by an 11 per cent growth at US Networks and 16 per cent growth at International Networks.

Adjusted OIBDA grew by 13 per cent to $1,914 million, driven by a 10 per cent increase at US Networks and an 18 per cent increase at International Networks.

The domestic results included significant additional licensing revenues under an extended and expanded licensing agreement, partially offset by increased content costs from higher impairment charges and changes in amortization rates at several networks.

Full year 2011 net income from continuing operations available to Discovery stockholders of $1.13 billion increased $503 million compared to $630 million a year ago.

The current year results primarily reflect the strong operating performance, a gain of $102 million, net of tax, as a result of contributing the domestic Discovery Health network to the Own: Oprah Winfrey Network (Own) joint venture, $99 million of lower expense from the change in the fair value of mark-to-market share-based compensation and $137 million in lower taxes, primarily due to the recognition of foreign tax credits.

The increase also reflects a $136 million loss on the early extinguishment of debt and termination of interest rate swaps included in the prior year.

Free cash flow was $1 billion for the year, an increase of $423 million from full year 2010, due to increased operating performance as well as lower net tax, interest and long-term incentive compensation payments, partially offset by higher working capital and content investments.

The prior year included payments of $138 million for the early extinguishment of debt and termination of interest rate swaps.

Fourth quarter revenues of $1.12 billion increased $107 million, or 11 per cent, over the fourth quarter a year ago, led by 11 per cent growth at US Networks and 12 per cent growth at International Networks.

Adjusted Operating Income Before Depreciation and Amortization (OIBDA) grew by eight per cent to $498 million, including $20 million of additional content costs in the quarter due to changes in amortization rates at several networks and higher impairment charges, as well as $12 million in adverse foreign currency impact.

Fourth quarter net income from continuing operations available to Discovery stockholders of $336 million increased by $142 million compared to $194 million for the fourth quarter a year ago.

The current quarter results reflect the strong operating performance as well as $109 million in lower taxes primarily due to the recognition of foreign tax credits as a result of a reorganisation of certain international operations, partially offset by a $20 million impairment charge related to our commerce operations.

Free cash flow was $324 million for the fourth quarter, an increase of $121 million from the fourth quarter of 2010, due to increased operating performance as well as lower net tax and long-term incentive compensation payments.