Discovery Communications shares "fell sharply" after the owner of TV channels including TLC, Animal Planet and the Oprah Winfrey Network said that fourth-quarter profit and revenue "were worse than expected" with the company’s int'l business hit by the "strong dollar," according to Shannon Bond of the FINANCIAL TIMES. Discovery CEO David Zaslav said that '15 "was a year that saw secular and economic challenges around the world." But he played down fears that U.S. consumers "are turning away from pricey packages of channels," saying that "most consumers seem to want the big bundle." Discovery has "expanded aggressively overseas and now makes about half its revenue" from int'l markets. Last year it "took full control of Eurosport, the sports broadcaster," and paid €1.3B for the near-exclusive rights to broadcast the Olympic Games in Europe between '18 and '24. But the "strengthening dollar and higher costs took a toll on financial performance." Discovery CFO Andy Warren said, "The flip side of having a large growing international business is that currency remained a major headwind on reported results versus 2014." In overseas markets, currency fluctuations shaved 14% off of revenue. Excluding currency effects, the Eurosport acquisition and the sale of SBS Radio, int'l revenue grew 11%, "with both distribution and advertising sales rising" (FT, 2/18).
