MUMBAI: Television trade event MipTV has announced that Discovery president, CEO David Zaslav will present a keynote address on 9 April, as part of MipTV?s Media Mastermind keynotes series. Organised by Reed Midem, MipTV will take place in Cannes from 8-11 April, 2013.

Zaslav sets the strategy and oversees all operations of the non-fiction media company that reaches more than 1.8 billion cumulative subscribers in nearly 220 countries and territories. Discovery is dedicated to igniting curiosity and delivering the thrill of discovery through more than 150 worldwide television networks and a leading portfolio of digital media properties that attract approximately 25 million unique visitors per month.

At MipTV, Zaslav will discuss the global content environment, recent international M&A activity and his strategy for continued growth at the world?s largest pay-TV programmer.

Prior to Discovery, Zaslav had a career at NBC Universal. In 2007, he received a Trustees Award for Lifetime Achievement from the National Academy of Television Arts and Sciences (Natas).

Under Zaslav?s leadership, in September 2008 Discovery began trading as a public company on the Nasdaq stock exchange and has since delivered average double-digit profit growth over the past five years.

MUMBAI: Discovery has announced that revenues for 2012 was $4.4 billion increased $319 million, or eight per cent, over 2011 revenues, primarily driven by 13 per cent growth at International Networks and 5 per cent growth at U.S. Networks.

Adjusted OIBDA grew 9 per cent to $2,095 million, driven by an 8 per cent increase at U.S. Networks and a 12 per cent increase at International Networks. Excluding foreign currency fluctuations, full year revenues increased 9 per cent and Adjusted OIBDA increased 12 per cent.

But net income for the year from continuing operations available to Discovery stockholders was $954 million, decreasing by $181 million compared to $1.1 billion a year ago as the strong operating performance in the current year was more than offset by the prior year inclusion of a $102 million, net of tax, gain from the contribution of the Discovery Health network to the OWN: Oprah Winfrey Network (Own) joint venture as well as the recognition of foreign tax credits a year ago.

Current year results also included increased mark-to-market equity-based compensation, higher interest expense and lower equity earnings as the Company began recording 100 per cent of OWN?s net losses in 2012.

Free cash flow was $1 billion for the year, a decrease of $20 million from 2011, as better operating performance was more than offset by higher content investment, cash taxes and interest.

Discovery president, CEO David Zaslav said, ?Discovery?s commitment to investing in our brands and developing new and diverse growth opportunities produced another year of strong operating momentum and financial results in 2012. The appeal of our content resulted in larger audiences across the globe, enabling us to deliver consistently healthy advertising growth both domestically and internationally, while we further leveraged our valuable programming across emerging distribution platforms worldwide.

"At the same time, the strength of our balance sheet allowed us to make several strategic investments that we believe further bolster our asset portfolio, while also returning over $1.3 billion to shareholders this year. We head into 2013 with significant momentum, having just delivered the highest fourth quarter domestic viewership in our history, and will continue to invest in strategic growth initiatives so that we can deliver sustained long-term financial results and shareholder value.?

Fourth quarter revenues were $1.2 billion increased $94 million, or eight per cent, over the fourth quarter a year ago, led by 15 per cent growth at International Networks and four per cent growth at US Networks. Adjusted Operating Income Before Depreciation and Amortization (OIBDA) grew by nine per cent to $545 million, as a 17 per cent increase at International Networks, despite the adverse impact of foreign currency fluctuations, and a 7 per cent increase at US Networks, more than offset strategic transaction related costs recognised in the quarter. Excluding foreign currency fluctuations, fourth quarter revenues increased 9 per cent and Adjusted OIBDA increased 11 per cent.

Fourth quarter net income from continuing operations available to Discovery stockholders of $224 million decreased by $112 million compared to $336 million for the fourth quarter a year ago as the strong operating performance and improved equity earnings in the current year were more than offset primarily by higher taxes and increased mark-to-market equity-based compensation. The higher taxes were largely due to foreign tax credits recognized a year ago as well as an increase in tax reserves in the fourth quarter of 2012.

Free cash flow was $304 million for the fourth quarter, a decrease of $20 million from the fourth quarter of 2011, as improved operating performance was more than offset by higher content investment, interest and cash taxes. Free cash flow is defined as cash provided by operating activities less acquisitions of property and equipment.

MUMBAI: Discovery, which is a leader in US pay-TV market, is all set to become world?s leading pay TV programmer outside the US, after it acquired ProSiebenSat.1 Group?s SBS Nordic operations for $1.7 billion and a 20 per cent stake in Eurosport for$221.6 million ( ?170 million).

The acquisition of ProSiebenSat.1 Group?s SBS Nordic operations and a minority stake in TF1/Eurosport would add to Discovery Communications? earnings and accelerate the international growth, Discovery Communications CEO David Zaslav said on a conference call.

The two acquisitions will add sports and scripted programming to the company even as he sought to clarify that the wasn?t planning to become a player in US sports broadcast which has big players like ESPN and Fox Sports among others.

"The US sports TV business is a totally different business. I do not see us getting into big checks," Zaslav said.

Discovery, Zaslav said, now has 153 channels in 217 countries with more than 1.8 billion subscribers. He also pointed out that Discovery was a "unique" media company as it owns nearly all of its content, which allows it room for syndication.

Similarly, TLC, he said, is now in 150 countries and has more than 300 million subscribers worldwide, making it the number one female TV lifestyle brand in the world.

According to Zaslv, the two deals will help Discovery to grow faster.

On being asked as to when international would overtake US business, Discovery Networks International CEO Mark Hollinger said there would be "friendly rivalry" between the US and international teams.

Hollinger and Zaslav are also bullish about Eurosport which has a potential for growth in other regions inlcuding Asia. Eurosport was a viable proposition since it was focussed on low-cost sports like tennis and ice skating. It also airs Bundesliga outside of Germany where it is cheaper.

MUMBAI: Discovery Communications is all set to become the biggest pay-TV operator outside US following its acquisition of German media company ProSiebenSat.1 Group?s SBS Nordic operations and strategic partnership with French media company TF1/Eurosport.

Discovery has signed a definitive agreement with ProSiebenSat.1 Group to purchase the company?s SBS Nordic operations for a total enterprise value of approximately $1.7 billion (?1.325 billion).

The acquisition of SBS Nordic includes 12 television networks in Norway, Sweden, Denmark and Finland, among other assets, and further solidifies Discovery?s long-term growth in the strong Nordic TV markets.
 
The deal also expands Discovery?s brand portfolio by adding general entertainment, scripted and sports programming to the company?s suite of services for the first time. The transaction is subject to regulatory review and is expected to close in early 2013.

"SBS Nordic has a fully distributed portfolio of dual revenue stream networks with a terrific management team that will expand Discovery?s footprint across the Nordic region, which includes some of the most well-penetrated and stable TV markets in the world,? said Discovery Communications president and CEO David Zaslav.

Additionally, Discovery also announced that its Board of Directors has approved a $1 billion increase to its existing stock repurchase program.

Sports broadcasting play

TF1 and Discovery Communications have said that they have taken the next step in their negotiations aimed at forging a strategic alliance which will see Discovery taking a 20 per cent minority interest in the Eurosport group, the parent company of Eurosport International and Eurosport France.

The acquisition of the 20 per cent interest would involve cash consideration of approximately ?170 million ($221.6 million).

A relationship between Eurosport and Discovery Communications would unlock synergies and complementary capabilities, particularly at the European level, in content (sports programming, entertainment, documentaries) and in development opportunities (geographical expansion, new product launches, digital rollout), the company said in statement.

Discovery also would have the possibility of raising its interest to 51 per cent in two years? time. If Discovery exercised its option, TF1 would have the ability to exercise a put option over the remaining 49 per cent, which potentially would give Discovery full ownership.

Discovery would become a shareholder in the TV Breizh, Histoire, Ushua?a TV and Styl?a channels, with a 20 per cent interest in each for a cash consideration of approximately ?14 million ($18.2 million) with the ability to increase to 49 per cent in two years.

The alliance also would aim to enhance the output of documentary, magazine and current affairs channels in order to offer French distributors a flagship range of theme channels built around the content and brand portfolios of the two groups.

In the production field, the proposed alliance would pave the way for the production of magazine and documentary programs of international standing via TF1 Production.

An agreement is expected to be signed in the coming weeks, once the relevant employee representative bodies have been consulted.

?Individually, and taken together, the acquisition of SBS Nordic, our pending strategic partnership with TF1 through the acquisition of a minority stake in Eurosport, and the increase in our share repurchase program are all complementary to our long-term growth strategy of delivering sustained operating results, creating strong organic growth through investment in content, brands and talent, and returning capital to shareholders," Zaslav said.

MUMBAI: US non-fiction media company Discovery has reported fiscal-third quarter revenue of $1,076 million, marginally down from the year-ago period, as seven per cent growth at International Networks was offset by four per cent decline at US Networks primarily due to additional revenues in the prior year from extending and expanding certain licensing agreements.

Adjusted Operating Income Before Depreciation and Amortisation (AOIBDA) grew by four per cent to $498 million, driven by an 11 per cent increase at International Networks and a two per cent increase at US Networks that included the impact of licensing agreements partially offset by higher content impairment costs in the prior year.

Third quarter net income from continuing operations available to Discovery stockholders of $214 million decreased $26 million compared to $240 million for the third quarter a year ago as the strong operating performance in the current year was more than offset by the impact of foreign currency fluctuations, increased mark-to-market equity-based compensation, other and interest expense as well as higher taxes.

Discovery president and CEO David Zaslav said, "Discovery delivered another quarter of strong operating results as a sustained focus on developing compelling content and leveraging it globally provided additional growth opportunities and continued financial momentum. In the U.S. we expanded market share, built new hits and capitalized on the ongoing strength of the ad market, while, internationally, we further leveraged the universal appeal of our programming and increased penetration of global pay-tv platforms to expand our unparalleled distribution footprint. Going forward we remain committed to thoughtfully investing in our brands and platforms while delivering sustained financial success and returning capital to our shareholders."

Free cash flow was $353 million for the third quarter, an increase of $39 million from the third quarter of 2011, as improved operating performance was partially offset by higher content investment and cash taxes. For the last twelve months, free cash flow increased by 13 per cent over the previous twelve month period.

MUMBAI: US brpadcaster Own: Oprah Winfrey Network has announced a partnership with actor, director, screenwriter, playwright and producer Tyler Perry to become his singular destination for all new television series and projects, including two new scripted series for the network to premiere in mid 2013.

These will be the first original scripted series for OWN and Perry will executive produce, write and direct both series.

Perry is known for television series ‘Tyler Perry‘s House of Payne‘, ‘Meet the Browns‘ and ‘For Better Or Worse‘ Own CEO Oprah Winfrey said, "I have been looking forward to the day when we would be in the position to enter the world of scripted television. That day has come. We are all energized by the opportunity to collaborate with Tyler who has a proven track record for producing highly successful cable series. He has an incredible ability to illuminate life stories and characters in his unique voice and inspires and encourages people all over the world."

Perry said, "It‘s a dream realised to partner with Oprah and bring scripted programming to Own. She has accomplished so much with the network and I‘m excited to work with her to be a part of its continued growth."

Discovery president, CEO David Zaslav said, "Bringing Tyler Perry exclusively to Own is a major coup. This announcement demonstrates the power of the Oprah brand to attract some of the biggest names in television and film to Own. Own‘s growth over the past nine months has been nothing short of phenomenal and, with the continued support of our advertising and affiliate Partners, this bold move into scripted entertainment positions OWN to continue that momentum going forward."