Discovery Earnings Weighed Down By Oprah
Discovery Communications (NASDAQ:DISCA) did not deliver on analysts’ expectations for its first-quarter earnings as losses at its joint venture, the Oprah Winfrey Network, boosted operating expenses 49 percent.
Net income dropped to $222 million (57 cents a share), from $305 million (74 cents a share) in the year-ago period. Revenue grew 16 percent to $1.10 billion. Analysts had expected earnings of 60 cents a share on revenue of $1.06 billion.
OWN was launched last year, and has been facing indifferent ratings. To remedy matters, OWN cut 30 jobs, introduced a slew of new reality shows, and canned its much-publicized Rosie O’Donnell talk show.
Despite the earnings miss, Discovery has raised its full-year revenue guidance to a range of $4.55 billion to $4.65 billion, up from the previous $4.45 billion to $4.58 billion.
Earnings Report: NVIDIA First Quarter Earnings Sneak Peek.