UPDATE: Discovery Posts Upbeat Q1 Profit

Discovery Communications

reported a better-than-expected first-quarter profit. Discovery's quarterly profit slipped to $230 million, versus a year-ago profit of $231 million. Its per-share earnings climbed to $0.66 per share from $0.63 per share. Excluding certain items, it earned $0.75 per share. Its revenue surged 22% to $1.41 billion versus $1.16 billion. However, analysts were projecting earnings of $0.71 per share on revenue of $1.43 billion. Discovery's international networks revenue climbed 51% to $671 million, while revenue from US networks gained 3.2% to $708 million. David Zaslav, Discovery's President and Chief Executive Officer, said, "Discovery's strong organic growth continued during the first quarter as our unparalleled global reach and sustained investment in diverse and engaging content allowed us to capitalize on the growing demand for pay-tv programming worldwide. The larger audiences and consistent market share gains we are delivering are driving sustained financial results, even as we further invest in our platforms and integrate strategic acquisitions that will enhance our long-term growth prospects. As we look to the remainder of 2014, leveraging the significant opportunities across our existing asset portfolio remains our priority so we can maintain our financial momentum while further building long-term shareholder value." Discovery expects 2014 revenue of $6.45 billion to $6.63 billion, versus analysts' estimates of $6.49 billion. Discovery shares rose 1.51% to close at $77.77 yesterday.