NEW DELHI: Discovery Inc has 15 million total paying direct-to-consumer subscribers across its global portfolio, it said on Wednesday, as it reported financial results for the quarter ended 31 March 2021.
The growth was primarily led by discovery+, having crossed 13 million total paying direct-to-consumer subscribers, since its launch on 4 January early this year.
"The global rollout of discovery+ is off to a fantastic start by any measure. Key metrics, including subscriber additions, customer engagement, and retention, are exceeding our expectations and demonstrating sustained momentum into the second quarter," said Discovery president and CEO David Zaslav. "Our strong direct-to-consumer performance underscores the outstanding value and appeal of our content, brands and personalities to both consumers and distribution partners alike. We continue to expand the reach of discovery+ with recent launches on Comcast Xfinity and Amazon Prime Video Channels. At the same time, we continue to extend our overall engagement with viewers across screens, anchored by another quarter as the most-watched pay-TV portfolio in the US and our seventh consecutive quarter of international share growth."
The media company's net income dipped 62.9 per cent to $140 million, or 21 cents per share, during the quarter.
However, revenue rose four per cent to $2.79 billion, edging past Wall Street estimates of $2.78 billion.
The international advertising revenues increased 16 per cent and distribution revenues were flat, or decreased two per cent ex-FX. Advertising revenue in the US declined two per cent, partly due to lower overall ratings, and to a lesser extent secular declines in the pay-TV ecosystem and lower inventory.
For the first quarter, Discovery was among the most-watched pay-TV portfolio in the US among key demographics, driven in part by TLC, which was popular among its key female demographics, the company said.
Internationally, the company said it enjoyed an impressive seventh consecutive quarter of linear share growth, anchored by growth in female genres and best ever quarterly performances in several markets, including the UK, France and Germany. International networks revenues increased 6.9 per cent year-on-year to $987 million. Advertising revenues were up 15.7 per cent, while distribution revenues were down 0.2 per cent.
The broadcaster said it will invest more than ever in the content across the board to support these platforms in 2021.
"We expect international distribution revenue to accelerate to mid-single-digit growth during the second quarter," said Discovery chief financial officer Gunnar Wiedenfels, adding that though the company is investing against a rigorous financial framework, it is also gearing up for two sets of Olympic games this summer and in Q1 next year, both of which will be tentpole events for the marketing of its d2c and linear brand.
