Discovery Communications (DISCA) has reported 21.51 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $219 million, or $0.36 a share in the quarter, compared with $279 million, or $0.43 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $246 million, or $0.40 a share compared with $306 million or $0.47 a share, a year ago.
Revenue during the quarter went down marginally by 0.06 percent to $1,556 million from $1,557 million in the previous year period. Gross margin for the quarter contracted 118 basis points over the previous year period to 61.95 percent. Total expenses were 70.57 percent of quarterly revenues, up from 67.57 percent for the same period last year. That has resulted in a contraction of 300 basis points in operating margin to 29.43 percent.
Operating income for the quarter was $458 million, compared with $505 million in the previous year period.
"While we faced challenging but expected headwinds this quarter, Discovery is well positioned for long-term growth driven by our well-defined global brands, differentiated content and favorable distribution agreements," said David Zaslav, president and chief executive officer, Discovery Communications. "We have continued to strengthen and maximize our traditional pay-TV offering with robust new programming while aggressively exploiting new opportunities to leverage our content across numerous digital platforms around the world. Amid an ever shifting global media ecosystem, Discovery is evolving to reach more consumers on more screens and platforms than ever before."
Operating cash flow improves significantlyDiscovery Communications has generated cash of $827 million from operating activities during the nine month period, up 26.84 percent or $175 million, when compared with the last year period. The company has spent $54 million cash to meet investing activities during the nine month period as against cash outgo of $26 million in the last year period.
The company has spent $968 million cash to carry out financing activities during the nine month period as against cash outgo of $699 million in the last year period.
Cash and cash equivalents stood at $224 million as on Sep. 30, 2016, down 14.50 percent or $38 million from $262 million on Sep. 30, 2015.
Working capital increases sharply
Discovery Communications has recorded an increase in the working capital over the last year. It stood at $1,161 million as at Sep. 30, 2016, up 90.02 percent or $550 million from $611 million on Sep. 30, 2015. Current ratio was at 1.76 as on Sep. 30, 2016, up from 1.29 on Sep. 30, 2015.
Days sales outstanding were almost stable at 90 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went down to 37 days for the quarter from 42 for the same period last year.
Debt moves upDiscovery Communications has witnessed an increase in total debt over the last one year. It stood at $7,996 million as on Sep. 30, 2016, up 13.31 percent or $939 million from $7,057 million on Sep. 30, 2015. Total debt was 50.45 percent of total assets as on Sep. 30, 2016, compared with 44.33 percent on Sep. 30, 2015. Debt to equity ratio was at 1.54 as on Sep. 30, 2016, up from 1.25 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 5.03 for the quarter from 6.16 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
