Discovery ( DISCA Quick Quote DISCA - Free Report) reported fourth-quarter 2020 adjusted earnings of 76 cents per share, beating the Zacks Consensus Estimate by 4.1% but decreasing 22.4% year over year. Revenues inched up 0.4% year over year to $2.89 billion and beat the consensus mark by 2.1%. Top-Line Details
Advertising revenues climbed 0.3% year over year to $1.60 billion. Moreover, Distribution revenues inched up 1.2% year over year to $1.22 billion. Other revenues were $65 million, down 11% from the year-ago quarter.
U.S. Networks (61.6% of revenues) revenues increased 1.5% on a year-over-year basis to $1.78 billion. Advertising revenues declined 0.3% while distribution revenues grew 5.3%.
Subscribers of Discovery’s fully distributed networks were 3% lower on a year-over-year basis. Total portfolio subscribers declined 5% year over year.
International Networks revenues (38.3% of revenues) slipped 1.3% year over year to $1.11 billion. Advertising revenues were up 1.5%, while distribution revenues were down 4%. Notably, total share of viewing across the international portfolio in the fourth quarter increased 4% on average, with strong share growth in the United Kingdom, Spain and Portugal. Operating Details
In the fourth quarter, selling, general and administrative (SG&A) expenses increased 2% from the year-ago quarter to $809 million. This year-over-year growth was due to 8% increase in International Network’s SG&A.
Adjusted operating income before depreciation & amortization (“OIBDA”) decreased 9.3% from the year-ago quarter to $1 billion. Excluding the foreign-exchange impact, OIBDA decreased 8%. U.S. Networks adjusted OIBDA increased 2.3% from the year-ago quarter to $946 million. However, International Networks’ adjusted OIBDA declined 37.8% from the year-ago quarter to $196 million. Excluding the forex impact, adjusted OIBDA was down 35%. GAAP operating income declined 30.8% year over year to $488 million. Balance Sheet
As of Dec 31, 2020, cash & cash equivalents were $2.09 billion compared with $1.89 billion as of Sep 30, 2020.
Discovery repurchased shares worth $213 million in the reported quarter. Currently, $1.4 billion of the $2-billion authorization remains as of Dec 31, 2020. Zacks Rank & Stocks to Consider
Currently, Discovery carries a Zacks Rank #3 (Hold).
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