Discovery Sees Q2 Profit Fall After Coronavirus Ad Slump
Discovery said second-quarter net income fell after the coronavirus pandemic spurred a pullback in advertising at both its U.S. and international operations, even as its TLC cable network garnered new levels of viewership during the period.
The New York owner of the Discovery, Food Network and HGTV cable networks, said revenue ell 12% during the period, to $2.54 billion compared with nearly $2.89 billion in the year-earlier period, largely due to a 14% decline in advertising at its U.S. operations.
The company is seeing “initial signs of stabilization” in “many of our key markets,” said David Zaslav, the company’s president and CEO, in a statement, indicating that Discovery intended to “resume returning capital to shareholders through share repurchases.” He said the company was “cautiously optimistic about the global outlook for the rest of the year.”
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