Discovery Communications’ second quarter profit fell 25 percent from 2014, despite the network of networks seeing a slight sales uptick overall.
The TV media company couldn’t hit the marks that Wall Street set for it this time around.
Analysts foresaw Discovery (DISCA) reporting earnings per share (EPS) of $0.48 on $1.67 billion in revenue. The David Zaslav-led company instead revealed EPS of $0.44 per share on $1.654 billion in revenue.
Meanwhile, net income fell year over year from $379 million to $286 million. Discovery shared the somewhat disappointing news on Wednesday morning before the U.S. stock markets rang their opening bells.
Domestically, Discovery’s U.S. networks’ revenue increased 5 percent from last year’s comparable three-month period to $814 million, driven by 12 percent distribution growth, per the company’s financial filing.
Higher rates and the consolidation of Discovery Family helped that sales metric. Advertising revenues were essentially flat during the 90-day period, as higher pricing was offset by lower ratings.
Still, as one might expect, President and CEO Zaslav (pictured above) was still publicly “pleased.”
“Driven by our unmatched portfolio and steady growth around the world, Discovery’s strong start to the year continued in the second quarter,” he said. “We have carried that momentum into the third quarter and signed three landmark deals — the historic agreement for the Olympic Games in Europe, our agreement to acquire full ownership of Eurosport and our comprehensive long-term renewal with Comcast — that will bolster Discovery’s position and market share for years to come.”
“I am pleased with the progress we made in the first half of the year and look forward to building our stable of content, IP and world-class platforms to drive viewer engagement and meaningful value to distributors, advertisers and shareholders now and into the future,” said Zazlav, who earned a remarkable $156.08 million in 2014, according to TheWrap’s executive compensation study.
Also of note during the quarter, Discovery repurchased 3.9 million shares of its Series C common stock at an average price of $31.36 per share, for a total of $123 million. Additionally, on May 7, Discovery repurchased 1.4 million shares from the Advance/Newhouse Programming Partnership at $61.63 per share, adding up to another $84 million.
Discovery Communications is home to cable channels such as Discovery, TLC and OWN.
The company will hold a conference call for investors and media analysts at 8:30 a.m. ET Wednesday.
The Scene at TCA: Funny, Frank and Flippant Quotes From Summer 2015 TV Press Tour (Photos)
“The Olsen twins cried a lot, so it was hard to get a take, that’s pretty accurate,” he said. “So I said, ‘get rid of ‘em.’” -- John Stamos revealing he almost got Mary Kate and Ashley Olsen fired from "Full House"
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“Every single actor in every single scene at some point is given one direction, which is: ‘OK, now do the scene as if you’re the killer,'” -- "Scream Queens" star Jamie Lee Curtis on the plan to reveal the killer
“She’s a star. She’s an iconic ABC star. We think the entire world will be talking about [her].” -- ABC President Paul Lee on "Quantico" star Priyanka Chopra
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"Everything that I portrayed during filming has happened to me as far as dancing, or everyday life. It’s completely authentic. There’s no frills to it.” -- "Flesh and Bone" star Sarah Hay on the series' depiction of ballet
“One of the pleasures of my career is to connect people of whom I am a fan, and I’d been a fan of Patrick’s for a number of years and of Jonathan’s [Ames] work.” -- "Blunt Talk" creator Seth MacFarlane on star Patrick Stewart
“I can’t really tell you [much], but I think when you see what she’s up to in the show, you’ll appreciate what a clever idea [it is].” -- "Doctor Who" showrunner Steven Moffat on Maisie Williams' role
“We’re not about violence and we’re not about gore. And if any torture is involved, we don’t show that. What we do show, is the consequence of the crime.” -- Sara Kozak, Senior Vice President, Production of Investigation Discovery
“I think the beauty of the bravery of Nat Geo is actually that they’re letting us de-sanitize the story of Thanksgiving and that whole part of our history." -- Actor Raul Trujillo on his TV movie "Saints & Strangers"
“Let me put it this way. If a person has 9,000 tweets and five of them are not to your taste. What I heard is, ‘This person has 8,995 tweets that weren’t offensive.'” -- New 'Daily Show' Host Trevor Noah on his Twitter controversy
"“MTV brought us up and said ‘Hey, it’s lunchtime.’ We had no idea what to do! They gave us a lunch break and everyone was freaking out, like ‘We can’t sit down. We can’t take lunch.'" -- YouTube star Todrick Hall on his new MTV show "Todrick"
“My own community ostracizes me and thinks of Nelly Fags and Butch Lesbians are sort of the pariahs of the community.” -- Lea DeLaria comparing her life story to that of her "Orange Is the New Black" character
“I don’t think anyone else needs to hear me bitch about E!” -- Chelsea Handler, host of an upcoming four-film Netflix documentary series
“Playing a trans character on a show being shepherded by Lana Wachowski, I knew I would be protected and represented in a way that trans people have never been represented before on TV,” -- "Sense8" star Jamie Clayton