Experts feel that this was partially offset by the impact of a non-cash goodwill impairment charge in the Asia-Pacific region. For the same period last year net income was $117 million.
The global broadcaster’s revenues increased by 3% to $2.6 billion, or increased 5% excluding the impact of foreign currency fluctuations (ex-FX), compared with the prior year’s quarter. International revenues increased by 4% to $950 million. Ex-FX, revenues increased by 9%. Ex-FX, growth in advertising was primarily driven by the consolidation of the UKTV Lifestyle Business, expansion of digital content offerings and to a lesser extent, higher pricing in certain markets in Europe.
Its operating expenses increased 8% to $713 million. Ex-FX, operating expenses increased by 10%. Ex-FX, costs of revenues increased primarily due to higher expenses associated with expanded digital content offerings and to a lesser extent, consolidation of the UKTV Lifestyle Business. Adjusted OIBDA decreased 7% to $237 million. Ex-FX, Adjusted OIBDA increased 5%.
Discovery in US recorded 3% increase in revenue touching $1,725 million. Adjusted OIBDA increased 12% to $1,005 million. Operating expenses decreased 7% to $720 million. Costs of revenues decreased primarily due to content synergies related to the integration of Scripps Networks.
Experts feel that boost in advertising was primarily driven by increases in pricing and to a lesser extent, the continued monetisation of digital content offerings and inventory, and partially offset by lower overall ratings and the impact of audience declines on the linear networks.
Discovery president, CEO David Zaslav commented: “We once again delivered strong financial results across our portfolio, generating healthy revenue growth in the US and internationally, and significant operational efficiencies from our ongoing transformation efforts. We also made progress in the build-out of our digital ecosystems that leverage our owned programming and brand strength. With a solid financial profile and strong balance sheet, we are able to invest meaningfully in our business and create additional value for shareholders.”