Discovery Communications Reports First Quarter 2010 Results

Discovery Communications Reports First Quarter 2010 Results

SILVER SPRING, Md., April 30 /PRNewswire-FirstCall/ -- First Quarter 2010 Financial Highlights:

-- Revenues increased 8% to $879 million
-- Adjusted OIBDA increased 10% to $367 million
-- Net income attributable to Discovery increased 42% to $169 million

Discovery Communications, Inc. ("Discovery" or the "Company") (NASDAQ: DISCA)(NASDAQ:DISCB)(NASDAQ:DISCK) today reported financial results for the first quarter ended March 31, 2010.

(Logo: http://www.newscom.com/cgi-bin/prnh/20080918/NETH035LOGO )

David Zaslav, Discovery's President and Chief Executive Officer said, "Discovery's first quarter performance was the result of strong operational execution and an improving economic environment. The ratings strength exhibited across our diverse portfolio throughout last year was sustained in the first quarter and, with an improved global advertising environment, we were able to further monetize our increased viewership. We remain committed to executing on our operating plan and delivering on our financial commitments while investing in our brands around the globe and strengthening the content across our distribution platforms."

First quarter revenues of $879 million increased $64 million, or 8%, over the first quarter a year ago led by 16% growth at International Networks and 5% growth at U.S. Networks. Adjusted Operating Income Before Depreciation and Amortization(1) ("OIBDA") grew 10% to $367 million, driven by a 29% increase at International Networks and a 4% increase at U.S. Networks despite increased content write-offs of $13 million. Total company Adjusted OIBDA margin increased to 42% for the first quarter from 41% for the same period a year ago.

First quarter net income attributable to Discovery Communications, Inc. stockholders of $169 million ($0.39 per diluted share) increased $50 million compared to $119 million ($0.28 per diluted share) for the first quarter a year ago. The increased results primarily reflect strong operating performance and a lower provision for income taxes due to a reversal of a foreign tax liability.

Free cash flow was $114 million for the first quarter, a decrease of $18 million from the first quarter of 2009, primarily reflecting increased spending for stock-based compensation and negative working capital, offset by increased operating performance. Free cash flow is defined as cash provided by operating activities less acquisitions of property and equipment.

(1) See the definition of Adjusted Operating Income Before Depreciation and Amortization on page 4.

SEGMENT RESULTS

(dollars in millions) Three Months Ended March 31,
-----------------------------
2010 2009(a) Change
---- ------ ------

Revenues:
U.S. Networks $546 $522 5%
International Networks 293 253 16%
Education and Other 37 36 3%
Corporate and
Eliminations 3 4 (25%)
--- ---
Total Revenues $879 $815 8%
==== ====

Adjusted OIBDA:
U.S. Networks $293 $281 4%
International Networks 124 96 29%
Education and Other 5 6 (17%)
Corporate and
Eliminations (55) (48) (15%)
--- ---
Total Adjusted OIBDA $367 $335 10%
==== ====

(a) The 2009 financial information has been recast for U.S. Networks
and Education and Other so that the basis of presentation is
consistent with that of the 2010 financial information. See Other
Items on page 4 for additional detail.

U.S. Networks
-------------
(dollars in
millions) Three Months Ended March 31,
----------------------------
2010 2009 Change
---- ---- ------

Revenues:
Distribution $259 $248 4%
Advertising 266 244 9%
Other 21 30 (30%)
--- ---
Total Revenues $546 $522 5%

Adjusted OIBDA $293 $281 4%

Adjusted OIBDA Margin 54% 54%

U.S. Networks' revenues in the first quarter of 2010 increased 5% to $546 million as advertising and distribution revenue growth more than offset lower commerce revenues, as a result of the transition to a new business model. Advertising revenue increased 9% primarily driven by higher cash sellouts and increased ratings. Distribution revenue grew 4% largely from higher rates, subscriber growth primarily from networks carried on the digital tier and lower launch-support amortization, partially offset by the absence of $12 million due to the removal of Discovery Kids following the sale of 50% of that entity on May 22, 2009. Excluding Discovery Kids and the lower launch-support amortization from the 2009 results, distribution revenues grew 8% compared with the first quarter a year ago.

Adjusted OIBDA increased 4% to $293 million reflecting the 5% revenue growth partially offset by 3% higher operating expenses primarily due to increased content write-offs of $13 million in the current quarter. Excluding content impairment charges and the impact of Discovery Kids, operating expenses were in-line with first quarter a year ago.

International Networks
----------------------
(dollars in
millions) Three Months Ended March 31,
----------------------------
2010 2009 Change
---- ---- ------

Revenues:
Distribution $186 $174 7%
Advertising 82 57 44%
Other 25 22 14%
--- ---
Total Revenues $293 $253 16%

Adjusted OIBDA $124 $96 29%

Adjusted OIBDA Margin 42% 38%

International Networks' revenues for the first quarter increased 16% to $293 million primarily led by advertising revenue growth of 44% and distribution revenue growth of 7%. Excluding the $13 million impact of foreign currency fluctuations, revenues increased 10% led by 35% advertising revenue growth, primarily from higher cash sellouts, increased viewership and subscriber growth across all international regions. Affiliate revenue in local currency terms was up 2% during the first quarter mainly from increased subscribers in Latin America and EMEA, partially offset by changes in channel mix at EMEA.

Adjusted OIBDA increased 29% to $124 million as the 16% revenue growth more than offset an 8% increase in operating expenses. Excluding the impact of foreign currency, Adjusted OIBDA increased 15% reflecting the 10% revenue growth, partially offset by a 6% increase in operating expenses primarily due to higher personnel costs, as well as a $4 million one-time charge in cost of revenues related to the acquisition of a production facility in the U.K.

Education and Other
-------------------
(dollars in
millions) Three Months Ended March 31,
----------------------------
2010 2009 Change
---- ---- ------

Revenues $37 $36 3%

Adjusted OIBDA $5 $6 (17%)

Adjusted OIBDA Margin 14% 17%

Education and Other first quarter revenues increased 3% to $37 million, primarily reflecting increased education revenues from higher streaming volumes. Adjusted OIBDA was in-line with in the first quarter of 2009 as the revenue growth was offset by higher production costs.

Corporate and Eliminations

Adjusted OIBDA decreased $7 million when compared to the first quarter a year ago primarily due to increased stock-based compensation expense.

FULL YEAR 2010 OUTLOOK

Discovery Communications, Inc. has raised its outlook for the full year ending December 31, 2010. The Company expects total revenue between $3,675 million and $3,775 million, Adjusted OIBDA between $1,600 million and $1,675 million, and net income available to Discovery Communications, Inc. stockholders of $700 million to $750 million. Our outlook incorporates current foreign exchange rates for revenues and expenses and current share price for mark-to-market stock-based compensation calculations.

NON-GAAP FINANCIAL MEASURES

Adjusted OIBDA and Free Cash Flow

In addition to the results prepared in accordance with U.S. generally accepted accounting principles ("GAAP") provided in this release, the Company has presented Adjusted OIBDA and free cash flow. The Company evaluates the operating performance of its segments based on financial measures such as revenues and adjusted operating income before depreciation and amortization ("Adjusted OIBDA"). Adjusted OIBDA is defined as revenues less costs of revenues and selling, general and administrative expenses excluding: (i) mark-to-market stock-based compensation, (ii) depreciation and amortization, (iii) amortization of deferred launch incentives, (iv) exit and restructuring charges, (v) certain impairment charges, and (vi) gains (losses) on business and asset dispositions. The Company uses this measure to assess operating results and performance of its segments, perform analytical comparisons, identify strategies to improve performance and allocate resources to each segment. The Company believes Adjusted OIBDA is relevant to investors because it allows them to analyze the operating performance of each segment using the same metric management uses and also provides investors a measure to analyze the operating performance of each segment against historical data. The Company excludes mark-to-market stock-based compensation, exit and restructuring charges, certain impairment charges, and gains (losses) on business and asset dispositions from the calculation of Adjusted OIBDA due to their volatility or non-recurring nature. The Company also excludes depreciation of fixed assets and amortization of intangible assets and deferred launch incentive as these amounts do not represent cash payments in the current reporting period.

The Company defines free cash flow as cash provided by operating activities less acquisitions of property and equipment. The Company uses free cash flow as it believes it is an important indicator for management and investors of the Company's liquidity, including its ability to reduce debt, make strategic investments and return capital to stockholders.

Adjusted OIBDA and free cash flow are non-GAAP measures, and should be considered in addition to, but not as a substitute for, operating income, net income, cash flows provided by operating activities and other measures of financial performance reported in accordance with GAAP. Please review the supplemental financial schedules beginning on page 9 for reconciliations to GAAP measures.

OTHER ITEMS

The 2009 financial information has been recast so that the basis of presentation is consistent with that of the 2010 financial information. This recast reflects the adoption of Financial Accounting Standards Board Accounting Standards Codification Topic 810, Consolidation (ASC 810), which amends the existing standards for variable interest entities, as well as the realignment of the Commerce business into the U.S. Networks' segment. See recast results on page 12 for additional details.

Conference Call Information

Discovery Communications, Inc. will host a conference call today at 8:30 a.m. EDT to discuss its first quarter 2010 results. To listen to the call, visit http://www.discoverycommunications.com/ or dial 1-800-901-5217 inside the U.S. and 1-617-786-2964 outside of the U.S., using the following passcode: 64981523.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains certain forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties. These statements are based on information available to the Company as of the date hereof, and the Company's actual results could differ materially from those stated or implied, due to risks and uncertainties associated with its business, which include the risk factors disclosed in its Annual Report on Form 10-K filed with the SEC on February 22, 2010. Forward-looking statements include statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future, and can be identified by forward-looking words such as "anticipate," "believe," "could," "continue," "estimate," "expect," "intend," "may," "should," "will" and "would" or similar words. Forward-looking statements in this release include, without limitation, the full year 2010 outlook. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

DISCOVERY COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; amounts in millions, except per share amounts)

Three Months Ended
March 31,
---------
2010 2009(a)
---- ------
(recast)
Revenues:
Distribution $445 $422
Advertising 348 301
Other 86 92
--- ---
Total revenues 879 815
--- ---

Cost of revenues, excluding depreciation and
amortization listed below 269 252
Selling, general and administrative 290 274
Depreciation and amortization 34 38
Restructuring charges 3 3
--- ---
596 567
--- ---

Operating income 283 248

Interest expense, net (58) (57)
Other non-operating (expense) income, net (5) 2
--- ---

Income before income taxes 220 193
Provision for income taxes (47) (70)
--- ---

Net income 173 123
Less net income attributable to noncontrolling
interests 4 4
--- ---
Net income attributable to Discovery Communications,
Inc. $169 $119
==== ====

Net income per share attributable to Discovery
Communications, Inc. stockholders:
Basic $0.40 $0.28
===== =====
Diluted $0.39 $0.28
===== =====
Weighted average number of shares outstanding:
Basic 425 422
=== ===
Diluted 429 422
=== ===

(a) The 2009 financial information has been recast so that the basis
of presentation is consistent with that of the 2010 financial
information. See Other Items on page 4 for additional detail.

DISCOVERY COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited; amounts in millions)

March 31, December 31,
2010 2009(a)
---- -------
(recast)
ASSETS
Current assets:
Cash and cash equivalents (including $39
and $40 restricted cash at 2010 and
2009, respectively) $691 $623
Receivables, net 773 812
Content rights, net 73 75
Prepaid expenses and other current assets 184 161
--- ---
Total current assets 1,721 1,671

Noncurrent content rights, net 1,177 1,207
Property and equipment, net 405 409
Goodwill 6,442 6,433
Intangible assets, net 636 643
Other noncurrent assets 571 589
--- ---
Total assets $10,952 $10,952
======= =======

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities $395 $446
Current portion of long-term debt 256 38
Other current liabilities 283 299
--- ---
Total current liabilities 934 783

Long-term debt 3,235 3,457
Other noncurrent liabilities 350 449

Commitments and contingencies
Redeemable noncontrolling interests 49 49

Equity:
Preferred stock 2 2
Common stock 3 3
Additional paid-in capital 6,618 6,600
Accumulated deficit (224) (393)
Accumulated other comprehensive loss (40) (21)
--- ---
Total Discovery Communications, Inc.
stockholders' equity 6,359 6,191
Noncontrolling interests 25 23
--- ---
Total equity 6,384 6,214
----- -----
Total liabilities and equity $10,952 $10,952
======= =======

(a) The 2009 financial information has been recast so that the basis
of presentation is consistent with that of the 2010 financial
information. See Other Items on page 4 for additional detail.

DISCOVERY COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited; amounts in millions)

Three Months Ended March
31,
2010 2009(a)
---- -------
(recast)
OPERATING ACTIVITIES
Net income $173 $123
Adjustments to reconcile net income to cash
provided by operating activities:
Stock-based compensation expense 44 37
Depreciation and amortization 34 38
Content amortization 185 166
Deferred income taxes (16) (22)
Other noncash expenses, net 17 16
Changes in operating assets and
liabilities:
Receivables, net 42 31
Purchase of content (170) (178)
Accounts payable and accrued liabilities (100) (58)
Stock-based compensation liabilities (49) (1)
Other, net (34) (1)
--- ---
Cash provided by operating activities 126 151

INVESTING ACTIVITIES
Purchases of property and equipment (12) (19)
Business acquisitions, net of cash acquired (38) -
Other investing activities, net (15) (6)
--- ---
Cash used in investing activities (65) (25)

FINANCING ACTIVITIES
Net borrowings from revolver loans - 3
Principal repayments of long-term debt (5) (66)
Principal repayments of capital lease
obligations (3) (3)
Cash distributions to noncontrolling
interest (2) (5)
Proceeds from stock option exercises 9 -
Other financing activities, net 2 (3)
--- ---
Cash provided by (used in) financing
activities 1 (74)

Effect of exchange rate changes on cash and
cash equivalents 6 (4)
--- ---

NET CHANGE IN CASH AND CASH EQUIVALENTS 68 48
Cash and cash equivalents beginning of
period 623 94
--- ---
CASH AND CASH EQUIVALENTS, END OF PERIOD $691 $142
==== ====

(a) The 2009 financial information has been recast so that the basis
of presentation is consistent with that of the 2010 financial
information. See Other Items on page 4 for additional detail.

DISCOVERY COMMUNICATIONS, INC.
SUPPLEMENTAL FINANCIAL DATA
RECONCILIATION OF ADJUSTED OPERATING INCOME BEFORE
DEPRECIATION AND AMORTIZATION
(unaudited; amounts in millions)

Three Months Ended March 31, 2010
Amortization
Adjusted Depreciation of
-------- ------------ ------------
Deferred
Launch
Operating and Incentives
--------- --- ----------
Income Before Amortization
------------- ------------
Depreciation
and
-------------
Amortization
------------

U.S. Networks $293 $(6) $(2)
International
Networks 124 (9) (9)
Education and Other 5 (1) -
Corporate and
Eliminations (55) (18) -
--- --- ---
Total $367 $(34) $(11)
==== ==== ====

Three Months Ended March 31, 2010
Mark-to- Other
Market (a) Operating
--------- -------- ---------
Stock-Based Income
----------- ------
Compensation
------------

U.S. Networks $- $- $285
International
Networks - (3) 103
Education and Other - - 4
Corporate and
Eliminations (36) - (109)
--- --- ----
Total $(36) $(3) $283
==== === ====

Three Months Ended March 31, 2009(b)(recast)
-------------------------------------------
Amortization
Adjusted Depreciation of
-------- ------------ -------------
Deferred
Launch
Operating and Incentives
--------- --- ----------
Income Before Amortization
------------- ------------
Depreciation
and
-------------
Amortization
------------

U.S. Networks $281 $(8) $(6)
International
Networks 96 (10) (8)
Education and Other 6 (1) -
Corporate and
Eliminations (48) (19) -
--- --- ---
Total $335 $(38) $(14)
==== ==== ====

Three Months Ended March 31, 2009(b)(recast)
-------------------------------------------
Mark-to- Other
Market (a) Operating
--------- -------- ---------
Stock-Based Income
----------- ------
Compensation
------------

U.S. Networks $1 $- $268
International
Networks - (1) 77
Education and Other - - 5
Corporate and
Eliminations (33) (2) (102)
--- --- ----
Total $(32) $(3) $248
==== === ====

(a) Amounts represent restructuring charges.
(b) The 2009 financial information has been recast so that the basis
of presentation is consistent with that of the 2010 financial
information. See Other Items on page 4 for additional detail.

DISCOVERY COMMUNICATIONS, INC.
SUPPLEMENTAL FINANCIAL DATA
(unaudited; amounts in millions)

CALCULATION OF FREE CASH FLOW

Three Months Ended March 31,
----------------------------
2010 2009(a) Change
---- ------ ------
(recast)
Cash provided by operating
activities $126 $151 $(25)
Acquisition of property and
equipment (12) (19) 7
--- --- ---
Free cash flow $114 $132 $(18)
==== ==== ====

(a) The 2009 financial information has been recast so that the basis
of presentation is consistent with that of the 2010 financial
information. See Other Items on page 4 for additional detail.

RECONCILIATION OF 2010 OUTLOOK TO GAAP MEASURES
Full Year 2010
--------------
Net income available to Discovery
Communications, Inc. stockholders $700 To $750
Interest expense, net 235 To 220
Depreciation and amortization 140 To 130
Other expense, including amortization of
deferred launch incentives, mark-to-market
stock-based compensation, asset impairment,
exit and restructuring costs, gains (losses)
on business disposition, gains (losses) on
sale of securities, equity earnings in
unconsolidated affiliates, unrealized and
realized gains and losses from derivatives,
income tax expense, net loss (income)
attributable to noncontrolling interests,
and stock dividends to preferred interests 525 To 575
--- ---
Adjusted OIBDA $1,600 To $1,675
====== ======

DISCOVERY COMMUNICATIONS, INC.
SUPPLEMENTAL FINANCIAL DATA
SELECTED FINANCIAL DETAIL
(unaudited; amounts in millions)

BORROWINGS
As of
March 31, 2010
$1.5 billion Term Loan B, due quarterly
September 2007 to May 2014 $1,459
$500 million Term Loan C, due quarterly
June 2009 to May 2014 495
8.37% Senior Notes, semi-annual interest, due
March 2011 220
8.13% Senior Notes, semi-annual interest, due
September 2012 235
Floating Rate Senior Notes, semi-annual interest, due
December 2012 (1.23 % at March 31, 2010) 90
6.01% Senior Notes, semi-annual interest, due December
2015 390
5.625% Senior Notes, semi-annual interest, due August
2019 500
Other notes payable 1
Capital lease obligations 114
---
Total long-term debt 3,504
Unamortized discount (13)
---
Long-term debt, net 3,491
Less: Current portion of long-term debt 256
---
Noncurrent portion of long-term debt $3,235
======

STOCK-BASED COMPENSATION

As of March 31, 2010
--------------------
Total Units
Outstanding Weighted
------------ --------
(in
Long-Term millions) Average
--------- ---------- -------
Grant
Incentive Plans Price
--------------- ------

Discovery Appreciation
Plan 12.3 $21.65

Stock Appreciation Rights 2.7 14.62

Stock Options 17.9 17.56

Performance-based
Restricted Stock Units 0.9 32.36

Service-based Restricted
Stock Units 0.5 31.78
---
Total stock-based
compensation plans 34.3 $19.39
----

As of March 31, 2010
--------------------
Vested
Units
Outstanding Weighted
------------ --------
(in
Long-Term millions) Average
--------- --------- -------
Grant
Incentive Plans Price
--------------- ------

Discovery Appreciation
Plan 1.1 $18.71

Stock Appreciation Rights 2.6 14.45

Stock Options 4.1 14.73

Performance-based
Restricted Stock Units - -

Service-based Restricted
Stock Units - -
---
Total stock-based
compensation plans 7.8 $15.20
---

DISCOVERY COMMUNICATIONS, INC.
SUPPLEMENTAL FINANCIAL DATA
RECAST OF SELECT FINANCIAL INFORMATION
(unaudited; amounts in millions)

2009 results have been recast to reflect the deconsolidation of OWN
and Animal Planet Japan due to the adoption of new accounting
standards regarding variable interest entities, as well as the
realignment of the Commerce business into the U.S Networks segment.
The tables below reflect this recast of prior year results.

Three Months Ended
------------------
September
March 31, June 30, 30,
2009 2009 2009
---- ---- ----
Revenues:
Distribution $422 $422 $422
Advertising 301 367 341
Other 92 88 88
--- --- ---
Total revenues 815 877 851
--- --- ---

Cost of revenues 252 254 255
Selling, general and
administrative 274 304 331
Depreciation and
amortization 38 40 40
Restructuring and
impairment charges 3 35 3
Gains on dispositions - (252) -
--- ---- ---
567 381 629
--- --- ---

Operating income 248 496 222

Interest expense, net (57) (60) (65)
Other non-operating
income (expense), net 2 9 (1)
--- --- ---

Income before income
taxes 193 445 156
Provision for income
taxes (70) (267) (54)
--- ---- ---

Net income 123 178 102

Less net income
attributable to
noncontrolling
interests (4) (2) (4)
--- --- ---
Net income attributable
to Discovery
Communications, Inc. 119 176 98
Stock dividends to
preferred interests - (2) (6)
--- --- ---
Net income available to
Discovery
Communications, Inc.
stockholders $119 $174 $92
==== ==== ===

Three Months Ended Year Ended
------------------
December
December 31, 31,
2009 2009
---- ----
Revenues:
Distribution $432 $1,698
Advertising 418 1,427
Other 112 380
--- ---
Total revenues 962 3,505
--- -----

Cost of revenues 297 1,058
Selling, general and
administrative 310 1,219
Depreciation and
amortization 37 155
Restructuring and
impairment charges 19 60
Gains on dispositions - (252)
--- ----
663 2,240
--- -----

Operating income 299 1,265

Interest expense, net (66) (248)
Other non-operating
income (expense), net 3 13
--- ---

Income before income
taxes 236 1,030
Provision for income
taxes (81) (472)
--- ----

Net income 155 558

Less net income
attributable to
noncontrolling
interests (5) (15)
--- ---
Net income attributable
to Discovery
Communications, Inc. 150 543
Stock dividends to
preferred interests - (8)
--- ---
Net income available to
Discovery
Communications, Inc.
stockholders $150 $535
==== ====

DISCOVERY COMMUNICATIONS, INC.
SUPPLEMENTAL FINANCIAL DATA
RECAST OF SELECT FINANCIAL INFORMATION
(unaudited; amounts in millions)

REVENUES Three Months Ended
------------------
September
March 31, June 30, 30,
2009 2009 2009
---- ---- ----

U.S. Networks:
Distribution $248 $247 $242
Advertising 244 290 261
Other 30 25 22
--- --- ---
Total 522 562 525
International Networks:
Distribution 174 175 180
Advertising 57 77 80
Other 22 27 30
--- --- ---
Total 253 279 290
Education and Other 36 35 35
Corporate and Eliminations 4 1 1
--- --- ---
Total Revenues $815 $877 $851
==== ==== ====

REVENUES Three Months Ended Year Ended
------------------
December December
31, 31,
2009 2009
---- ----

U.S. Networks:
Distribution $245 $982
Advertising 287 1,082
Other 29 106
--- ---
Total 561 2,170
International Networks:
Distribution 187 716
Advertising 130 344
Other 39 118
--- ---
Total 356 1,178
Education and Other 42 148
Corporate and Eliminations 3 9
--- ---
Total Revenues $962 $3,505
==== ======

ADJUSTED OIBDA Three Months Ended
------------------
September
March 31, June 30, 30,
2009 2009 2009
---- ---- ----

U.S. Networks $281 $340 $309
International Networks 96 91 109
Education and Other 6 1 2
Corporate and Eliminations (48) (46) (50)
--- --- ---
Total Adjusted OIBDA $335 $386 $370
==== ==== ====

ADJUSTED OIBDA Three Months Ended Year Ended
------------------
December December
31, 31,
2009 2009
---- ----

U.S. Networks $299 $1,229
International Networks 151 447
Education and Other 7 16
Corporate and Eliminations (60) (204)
--- ----
Total Adjusted OIBDA $397 $1,488
==== ======

Photo: http://www.newscom.com/cgi-bin/prnh/20080918/NETH035LOGO
Source: Discovery Communications, Inc.

CONTACT: Corporate Communications, Michelle Russo, +1-240-662-2901,
michelle_russo@discovery.com; Investor Relations, Craig Felenstein,
+1-212-548-5109, craig_felenstein@discovery.com

Web Site: http://www.discovery.com/

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