Discovery Communications, Inc. (DISCA) has reported a 38.81 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $304 million, or $0.52 a share in the quarter, compared with $219 million, or $0.34 a share for the same period last year. On an adjusted basis, earnings per share were at $0.56 for the quarter compared with $0.38 in the same period last year.
Revenue during the quarter went up marginally by 1.58 percent to $1,672 million from $1,646 million in the previous year period. Gross margin for the quarter expanded 31 basis points over the previous year period to 61.42 percent. Total expenses were 68.60 percent of quarterly revenues, down from 73.21 percent for the same period last year. This has led to an improvement of 461 basis points in operating margin to 31.40 percent.
Operating income for the quarter was $525 million, compared with $441 million in the previous year period.
"Discovery’s diversified set of nonfiction, sports and kids’ entertainment brands, and strong strategic positioning continued to drive attractive distribution agreements, helping to deliver solid operating and financial results in 2016," said David Zaslav, president and chief executive officer, Discovery Communications. "As we begin 2017, we will continue to invest in our premier global IP and brands to nourish fans across all screens, all platforms and all services to drive shareholder value and propel our business for years to come amid the rapidly changing media landscape."
Operating cash flow improves
Discovery Communications, Inc. has generated cash of $1,373 million from operating activities during the year, up 7.52 percent or $96 million, when compared with the last year.
The company has spent $256 million cash to meet investing activities during the year as against cash outgo of $301 million in the last year.
The company has spent $1,177 million cash to carry out financing activities during the year as against cash outgo of $902 million in the last year period.
Cash and cash equivalents stood at $300 million as on Dec. 31, 2016, down 23.08 percent or $90 million from $390 million on Dec. 31, 2015.
Working capital increases marginally
Discovery Communications, Inc. has recorded an increase in the working capital over the last year. It stood at $1,038 million as at Dec. 31, 2016, up 2.06 percent or $21 million from $1,017 million on Dec. 31, 2015. Current ratio was at 1.66 as on Dec. 31, 2016, up from 1.64 on Dec. 31, 2015.
Debt moves up marginally
Discovery Communications, Inc. has witnessed an increase in total debt over the last one year. It stood at $7,923 million as on Dec. 31, 2016, up 2.43 percent or $188 million from $7,735 million on Dec. 31, 2015. Total debt was 50.28 percent of total assets as on Dec. 31, 2016, compared with 48.76 percent on Dec. 31, 2015. Debt to equity ratio was at 1.53 as on Dec. 31, 2016, up from 1.42 as on Dec. 31, 2015. Interest coverage ratio improved to 6.10 for the quarter from 5.38 for the same period last year.
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