Discovery Clocks 23% Revenue Growth In Q3, Earnings Miss Consensus

Discovery Inc DISCA reported third-quarter FY21 revenue growth of 23% year-on-year to $3.15 billion, beating the consensus of $3.14 billion.
It ended Q3 with 20 million Direct-to-Consumer Subscribers and generated nearly $425 million of Next Generation Revenues, up 100% Y/Y.
Total U.S. Networks revenues increased 12% Y/Y to $1.86 billion. Total International Networks revenues increased 44% Y/Y to $1.3 billion.
Advertising revenue increased 11.6% Y/Y to $1.46 billion. U.S. Networks' advertising revenue increased 5% due to higher pricing, the continued monetization of content offerings on its next-generation platforms, and higher inventory.
Revenue from Distribution grew 15% Y/Y to $1.38 million. U.S. Networks' Distribution revenue increased 21%, driven by the January 2021 launch of discovery+ and increased contractual affiliate rates.
EPS of $0.24 missed the consensus of $0.41.
Discovery generated $811 million in operating cash flow, $705 million in free cash flow and held $3.12 billion in cash and equivalents.
Price Action: DISCA shares traded lower by 2.59% at $24.04 on the last check Wednesday.