Discovery 3rd Quarter Revenue Rises 23%, Beats Forecast

Discovery Inc. beat Wall Street expectations for third-quarter revenue on Wednesday, driven by higher advertising and distribution revenue from the European broadcast of the Tokyo Olympic Games, Eva Mathews reported for Reuters.

Photo Insert: The Discovery Communications headquarters in Silver Spring, Maryland

Revenue rose about 23% to $3.15 billion in the quarter ended Sept. 30, slightly above an estimate of $3.14 billion, according to Refinitiv data. Total paid streaming subscribers globally stood at 20 million at the end of the third quarter, up from 17 million in the previous quarter.

That figure includes subscribers to the Discovery+ streaming service launched in January, the company said.

Advertising revenue rebounded after a pull-back due to the pandemic, and was up 28% internationally from the same period last year. Both domestic and international distribution revenue were also up from a year ago, driven by Discovery+.

The Animal Planet and TLC-owner is currently gearing up to combine with AT&T's (T.N) WarnerMedia unit to create a new media business, seeking scale to take on streaming rivals such as Netflix Inc (NFLX.O) and Walt Disney Co (DIS.N).

The deal is expected to close in the middle of 2022. Net income stood at $156 million or 24 cents per share.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic