Discovery Communications, Inc (DISCA) has reported 18.25 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $215 million, or $0.37 a share in the quarter, compared with $263 million, or $0.42 a share for the same period last year. On an adjusted basis, earnings per share were at $0.41 for the quarter compared with $0.46 in the same period last year. Revenue during the quarter grew 3.33 percent to $1,613 million from $1,561 million in the previous year period. Gross margin for the quarter expanded 29 basis points over the previous year period to 62.37 percent. Total expenses were 69.81 percent of quarterly revenues, up from 68.67 percent for the same period last year. That has resulted in a contraction of 113 basis points in operating margin to 30.19 percent.
Operating income for the quarter was $487 million, compared with $489 million in the previous year period.
“Improved ratings across many of Discovery’s key distinctive programs and brands, coupled with strong global distribution growth, led to solid organic growth in the first quarter,” said President and Chief executive officer David Zaslav. “Beyond our linear business, we continue to focus on new strategic partnerships and investments to help drive our multiplatform growth strategy and ensure that we reach our global superfans on every screen.”
Operating cash flow improves significantly
Discovery Communications, Inc has generated cash of $255 million from operating activities during the quarter, up 311.29 percent or $193 million, when compared with the last year period. The company has spent $224 million cash to meet investing activities during the quarter as against cash outgo of $1 million in the last year period.
The company has spent $84 million cash to carry out financing activities during the quarter as against cash outgo of $155 million in the last year period.
Cash and cash equivalents stood at $267 million as on Mar. 31, 2017, down 19.82 percent or $66 million from $333 million on Mar. 31, 2016.
Working capital declines
Discovery Communications, Inc has witnessed a decline in the working capital over the last year. It stood at $1,057 million as at Mar. 31, 2017, down 18.19 percent or $235 million from $1,292 million on Mar. 31, 2016. Current ratio was at 1.69 as on Mar. 31, 2017, down from 1.94 on Mar. 31, 2016.
Days sales outstanding went down to 85 days for the quarter compared with 87 days for the same period last year.
At the same time, days payable outstanding was almost stable at 36 days for the quarter, when compared with the previous year period.
Debt moves up marginally
Discovery Communications, Inc has witnessed an increase in total debt over the last one year. It stood at $8,102 million as on Mar. 31, 2017, up 1.40 percent or $112 million from $7,990 million on Mar. 31, 2016. Total debt was 51.08 percent of total assets as on Mar. 31, 2017, compared with 50.32 percent on Mar. 31, 2016. Debt to equity ratio was at 1.52 as on Mar. 31, 2017, up from 1.49 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 5.35 for the quarter from 5.75 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
