Discovery Stock Falls On Q1 Earnings Miss

Discovery Inc’s DISCA reported first-quarter FY21 revenue growth of 4% year-on-year to $2.8 billion, beating analyst consensus of $2.77 billion.
Total U.S. Networks revenues rose 3% to $1.8 billion, and Total International Networks revenues increased 7% to $987 million.
U.S. advertising revenues declined 4%, while distribution revenue rose 12%. International advertising revenue rose 16%, while distribution revenues were flat.
Discovery ended Q1 with 13 million global next-generation paying direct-to-consumer subscribers. “We now have 15M total paying direct-to-consumer subscribers across our global portfolio driven primarily by discovery+, having crossed 13M total paying direct-to-consumer subscribers at the end of March,” President and CEO David Zaslav said.
Adjusted operating income before depreciation and amortization (OIBDA) declined 25% from a 19% decline in U.S. Networks OIDBA and a 21% decline in International OIDBA. Operating margin fell by 1,485 bps to 14.2%.
EPS declined 62% to $0.21, missing analyst estimate of $0.65.
The company generated $269 million in operating cash flow. It held $2 billion in cash and equivalents.
Price action: DISCA shares traded lower by 5.82% at $36.74 on the last check Wednesday.