Discovery posts beats in revenue, underlying profit ahead of WarnerMedia closing
Frederick M. Brown/Getty Images Entertainment

Discovery (NASDAQ:DISCA) is 5.9% lower amid some broader media-sector declines Thursday, following on its fourth-quarter earnings report - likely its last before a transformative combination with WarnerMedia (T
-3.4%).
The company beat expectations on revenue and underlying profitability, capping an "exceptional year" for the company, CEO David Zaslav says.
Revenues rose 10% to $3.19 billion - up 11% excluding foreign exchange impact.
Net income as reported dropped heavily, to $91 million from a prior-year $318 million, but was impacted by a $307 million swing in "other income/expense," including such factors as an $85 million noncash impairment from the merger of Discovery's Group Nine Media with Vox Media.
Operating income before depreciation and amortization, though, rose to $1.14 billion on an adjusted basis, from a previous $1 billion (up 13%, or up 15% excluding FX).
Cash from operations jumped 60% to $884 million, and free cash flow rose 78%, to $784 million.
Discovery grew global direct-to-consumer paying subscribers to 22 million, up by 2 million from the previous quarter.
In the company's U.S. Networks unit, advertising revenue rose 5% to $1.1 billion, while distribution revenues jumped 17% to $832 million. Overall U.S. revenues rose 14%, to $2.03 billion, and OIBDA rose 17%, to $1.1 billion.
Internationally, advertising revenues rose 10% to $607 million, while distribution ticked up 2% to $520 million. Overall international revenues rose 5% to $1.16 billion.
Discovery and AT&T (NYSE:T) are tracking toward a mid- to late-April close to their deal to combine media businesses into the new Warner Bros. Discovery, now that Discovery's set its stockholder meeting for March 11.
Seeking Alpha authors rate Discovery a Strong Buy, while Wall Street as a group has a Buy stance. Seeking Alpha's Quant Ratings, meanwhile, signal a Hold.