Feb 13 (Reuters) - Discovery Communications Inc’ quarterly profit rose higher-than-expected as advertising revenue in its international networks more than doubled.
The company posted a 64 percent rise in revenue from its international networks in the fourth quarter, outstripping the 5 percent rise in revenue from U.S. networks.
Media companies such as Discovery make money from advertising on their cable networks and from fees paid by companies such as Comcast Corp and DirecTV to carry their channels.
Discovery has invested more in content across its channels, which include Animal Planet, Discovery Channel and Investigation Discovery, at a faster rate than the fees it receives from pay-TV operators.
The company’s revenue from international networks rose to $758 million in the quarter from $462 million, powered by a 119 percent rise in advertising revenue.
Discovery said international advertising revenues, excluding newly acquired businesses, rose 26 percent in local currency terms, mainly due to higher viewership and pricing, particularly in Western Europe and Latin America.
Revenue at its U.S. networks rose to $740 million from $703 million due to higher distribution and advertising revenue.
Total revenue increased 28 percent to $1.54 billion.
The company’s net income rose to $289 million, or 81 cents, from $224 million, or 61 cents, a year earlier.
Excluding items, the company earned 92 cents per share.
Analysts on average were looking for earnings of 89 cents per share, on revenue of $1.55 billion, according to Thomson Reuters I/B/E/S.
Discovery shares closed at $82.86 on Wednesday on the Nasdaq.