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Tag: David Zaslav

  • FY-2015: Forex retards Discovery Communications revenue, lowers adjusted OIBDA

    FY-2015: Forex retards Discovery Communications revenue, lowers adjusted OIBDA

    BENGALURU: Discovery Communications Inc. (Discovery) US Networks segment reported 6.1 per cent growth in revenue for the year ended 31 December, 2015 (FY-2015, current year) at $3,131 million as compared to $2,950 million in the previous year. These gains were offset by a 2.1 per cent decline in revenues in FY-2015 by its International Networks segment to $3,092 million as compared to $3,157 million in the previous year, primarily due to currency effects. Discovery reported revenue of $6,394 million in the current year as compared to $6,265 million in the previous year. 

    Adjusted Operating Income Before Depreciation and Amortisation (OIBDA) declined 3.7 per cent in FY-2015 to $2,398 million as compared to $2,491 million in the previous year. Net income available to Discovery in FY-2015 declined 9.2 per cent to $1,034 million ($1.58 per diluted share) compared to $1,139 million ($1.66 per diluted share) for FY-2014, primarily due to currency exchange rates, higher losses associated with the sale of businesses and lower equity earnings, partially offset by a decrease in taxes, restructuring costs and equity-based compensation.

    Discovery president and CEO David Zaslav said, “In 2015, Discovery Communications continued to build momentum with our unmatched worldwide brands and leading multiplatform distribution network. We surpassed three billion cumulative viewers, launched more new networks and increased audience and market share, all of which helped to drive steady global growth and strong financial results. Propelled by our category leadership, broad rights ownership and content and brand expansion across platforms, Discovery is well positioned to thrive in the rapidly evolving media landscape and to drive continued shareholder value in the years ahead.”

    For the quarter ended 31 December, 2015 (Q4-2015, current quarter), the company reported 1.8 per cent decline in revenue to $1,646 million as compared to $1,676 in the corresponding prior year quarter also primarily due to currency effects says Discovery. While US Networks reported 5.6 per cent increased revenues for Q4-2015 at $787 million from $745 million, International Networks revenue declined 7.7 per cent to $816 million from $884 million in Q4-2014. Adjusted OIBDA declined 10 per cent to $574 million in Q4-2015 from $638 million in Q4-2014. US Networks adjusted OIBDA in the current quarter increased 1.2 per cent to $410 million from $405 million. International Networks adjusted OIBDA declined 20.2 per cent to $262 million from $329 million in the corresponding prior year quarter.

    In Q4-2015, net income available to Discovery stockholders decreased to $219 million ($0.34 per diluted share) compared to $250 million ($0.38 per diluted share) for Q4-2014, primarily due to foreign currency exchange rates, losses associated with the sale of businesses and higher net income attributable to non-controlling interests, partially offset by a decrease in restructuring costs and higher earnings related to equity-method instruments says the company.

    Advertising and Distribution numbers

    Distribution revenues in FY-2015 increased eight per cent to $3,068 million from $2,842 in the previous year. Advertising revenues in FY-2015 declined 2.8 per cent to $3,004 million from $3,089 million in FY-2014. Discovery says that Distribution revenues, excluding the impact of Eurosport and currency effects, grew primarily due to increased rates and subscribers in Latin America as well as increased subscribers in CEEMEA. Advertising revenues, excluding the impact of Eurosport, SBS Radio and currency effects, were up primarily due to higher pricing and ratings in Southern Europe, higher pricing, volume and ratings in Latin America, and higher pricing in Northern Europe. 

    Excluding the impact of Eurosport, SBS Radio and foreign currency exchange rates, Adjusted OIBDA was up reflecting the revenue growth partially offset by an 11 per cent increase in operating expenses. The higher operating expenses were primarily due to increased content expenses and personnel costs.

    Distribution revenues in Q4-2015 increased 1.8 per cent to $759 million from $745 million in Q4-2014. Advertising revenues in the current quarter declined 3.2 per cent to $804 million from $831 million in the corresponding quarter of 2014.

    Discovery says that Distribution revenues, excluding the impact of Eurosport and currency effects, grew mainly from increased rates and subscribers in Latin America. Advertising revenues, excluding the impact of Eurosport, SBS Radio and currency effects, were up, primarily due to higher pricing and ratings in Southern Europe, higher pricing and volume in Latin America, and higher pricing and volume in Asia.

    Excluding the impact of Eurosport, SBS Radio and currency, Adjusted OIBDA was up one per cent, reflecting the revenue growth partially offset by an 18 per cent increase in operating expenses. The higher operating expenses were primarily due to increased content expenses and personnel costs.

  • BBC & Discovery ink long-term Olympic partnership

    BBC & Discovery ink long-term Olympic partnership

    MUMBAI: The BBC and Discovery Communications have inked a long-term Olympic Games agreement in the UK, building on a 30-year partnership between the two global media organisations.

    The deal means that the BBC will sub-license (from Discovery) exclusive free-to-air audio-visual and non-exclusive radio rights to the 2022 and 2024 Olympic Games. In turn, Discovery will sub-license (from the BBC) exclusive pay-TV rights in the UK to the 2018 and 2020 Olympic Games.

    The London 2012 Olympic Games was watched on the BBC by more than 50 million people in the UK, seven million people in the UK accessed the BBC website every day, with 111 million requests for video throughout the Games, and over two million people downloaded the app. It was truly the first digital Olympic Games and the BBC raised the bar in its coverage.

    This announcement ensures that the BBC will continue to be the free-to-air home of the best action from the Olympic Games until 2024, bringing the moments that unite the nation on TV and radio. Additionally, the BBC’s package of rights is supplemented by digital rights to the content it broadcasts on TV.

    This agreement marks the first Olympic Games sub-licensing deal by Discovery and reinforces Eurosport as the home of the Olympic Games across Europe, ensuring that every event is available to fans across all screens. The news follows an agreement announced by Discovery Communications and the International Olympic Committee (IOC) last June, which includes exclusive multimedia rights for 50 countries and territories in Europe for the 2018 through the 2024 Olympic Games. The rights for the UK were included for only 2022 and 2024, as these rights had already been secured by the BBC in the UK.

    BBC director-general Tony Hall said, “The BBC prides itself on bringing the biggest sporting moments to the public. For many, the BBC has been their stadium for Olympic coverage. It is an event that unites the nation like no other. I’m delighted that through our new partnership with Discovery, the BBC will continue to carry the torch for great sporting coverage right through to the 2024 Games. While the BBC has had to take some tough financial decisions, this partnership underlines our commitment to making world-class sport available to all.”

    Discovery Communications president and CEO David Zaslav added, “Discovery is a passionate and committed partner of the Olympic Movement. Today’s agreement is a win for UK sports fans and marks an exciting new chapter in Discovery and the BBC’s partnership on major sporting events. For 30 years, our two organisations have chartered new frontiers with co-production partnerships in factual and natural history programming. Now we join together once again to bring the most compelling stories of human ambition, sacrifice and achievement to people across the UK.”

    IOC Television and Marketing Services MD Timo Lumme said, “We are delighted our partners Discovery / Eurosport and the BBC are collaborating on this long term agreement which is great news for viewers in the UK. By sharing the rights, viewers will benefit from the BBC’s rich Olympic heritage and Discovery’s innovative approach to storytelling. Together, they will make the Olympic Games as accessible and engaging as possible.”

    BBC Sport director Barbara Slater said, “We are very pleased that the BBC will continue to bring free-to-air Olympic Games coverage to audiences through to 2024, extending our relationship with the event which began in 1928 and reinforcing the BBC’s long-term commitment to major sporting events. The Olympic Games is one of the nation’s most treasured sporting events and this is an extensive package of rights that ensures we can offer ‘the best of the Games’, across TV, radio, online and digital, maximising the reach and impact of the BBC. This ground-breaking partnership also shows how the BBC can collaborate and work with others to continue to bring the very best in sport to licence fee payers.”

    Discovery Networks International president JB Perrette said, “Since the announcement of our partnership with the IOC, it has been Discovery’s goal to engage and entertain local audiences in Europe with the ultimate Olympic Games experience across all screens. To realise this ambition, we will leverage our portfolio of pay-TV, free-to-air and digital services, and collaborate with the very best partners who share this vision – the BBC partnership embodies this perfectly.”

  • BBC & Discovery ink long-term Olympic partnership

    BBC & Discovery ink long-term Olympic partnership

    MUMBAI: The BBC and Discovery Communications have inked a long-term Olympic Games agreement in the UK, building on a 30-year partnership between the two global media organisations.

    The deal means that the BBC will sub-license (from Discovery) exclusive free-to-air audio-visual and non-exclusive radio rights to the 2022 and 2024 Olympic Games. In turn, Discovery will sub-license (from the BBC) exclusive pay-TV rights in the UK to the 2018 and 2020 Olympic Games.

    The London 2012 Olympic Games was watched on the BBC by more than 50 million people in the UK, seven million people in the UK accessed the BBC website every day, with 111 million requests for video throughout the Games, and over two million people downloaded the app. It was truly the first digital Olympic Games and the BBC raised the bar in its coverage.

    This announcement ensures that the BBC will continue to be the free-to-air home of the best action from the Olympic Games until 2024, bringing the moments that unite the nation on TV and radio. Additionally, the BBC’s package of rights is supplemented by digital rights to the content it broadcasts on TV.

    This agreement marks the first Olympic Games sub-licensing deal by Discovery and reinforces Eurosport as the home of the Olympic Games across Europe, ensuring that every event is available to fans across all screens. The news follows an agreement announced by Discovery Communications and the International Olympic Committee (IOC) last June, which includes exclusive multimedia rights for 50 countries and territories in Europe for the 2018 through the 2024 Olympic Games. The rights for the UK were included for only 2022 and 2024, as these rights had already been secured by the BBC in the UK.

    BBC director-general Tony Hall said, “The BBC prides itself on bringing the biggest sporting moments to the public. For many, the BBC has been their stadium for Olympic coverage. It is an event that unites the nation like no other. I’m delighted that through our new partnership with Discovery, the BBC will continue to carry the torch for great sporting coverage right through to the 2024 Games. While the BBC has had to take some tough financial decisions, this partnership underlines our commitment to making world-class sport available to all.”

    Discovery Communications president and CEO David Zaslav added, “Discovery is a passionate and committed partner of the Olympic Movement. Today’s agreement is a win for UK sports fans and marks an exciting new chapter in Discovery and the BBC’s partnership on major sporting events. For 30 years, our two organisations have chartered new frontiers with co-production partnerships in factual and natural history programming. Now we join together once again to bring the most compelling stories of human ambition, sacrifice and achievement to people across the UK.”

    IOC Television and Marketing Services MD Timo Lumme said, “We are delighted our partners Discovery / Eurosport and the BBC are collaborating on this long term agreement which is great news for viewers in the UK. By sharing the rights, viewers will benefit from the BBC’s rich Olympic heritage and Discovery’s innovative approach to storytelling. Together, they will make the Olympic Games as accessible and engaging as possible.”

    BBC Sport director Barbara Slater said, “We are very pleased that the BBC will continue to bring free-to-air Olympic Games coverage to audiences through to 2024, extending our relationship with the event which began in 1928 and reinforcing the BBC’s long-term commitment to major sporting events. The Olympic Games is one of the nation’s most treasured sporting events and this is an extensive package of rights that ensures we can offer ‘the best of the Games’, across TV, radio, online and digital, maximising the reach and impact of the BBC. This ground-breaking partnership also shows how the BBC can collaborate and work with others to continue to bring the very best in sport to licence fee payers.”

    Discovery Networks International president JB Perrette said, “Since the announcement of our partnership with the IOC, it has been Discovery’s goal to engage and entertain local audiences in Europe with the ultimate Olympic Games experience across all screens. To realise this ambition, we will leverage our portfolio of pay-TV, free-to-air and digital services, and collaborate with the very best partners who share this vision – the BBC partnership embodies this perfectly.”

  • Discovery Communications inks long-term distribution deal with Lionsgate

    Discovery Communications inks long-term distribution deal with Lionsgate

    MUMBAI: Discovery Communications and Lionsgate have entered an exclusive long-term agreement wherein the latter will distribute programming from Discovery’s network portfolio across packaged media platforms in the United States.

     

    The agreement encompasses DVD and Blu-ray distribution of Discovery’s portfolio of series and specials spanning its network brands, including Discovery Channel, TLC, Animal Planet and Investigation Discovery.

     

    The first release under the agreement will be the 23 February, 2016 Blu-ray and DVD release of Racing Extinction, the landmark documentary, which had its worldwide premiere yesterday on Discovery Channel in more than 220 markets. The film, directed by Academy Award-winning filmmaker Louie Psihoyos, tells the story of a team of artists and activists on an undercover operation to expose the hidden world of endangered species and the race to protect them against mass extinction. Spanning the globe to infiltrate the world’s most dangerous black markets and using high tech tactics to document the link between carbon emissions and species extinction, Racing Extinction reveals stunning, never-before seen images that truly change the way we see the world.

     

    “We’re thrilled to expand our relationship with Discovery, home of some of the most exciting brands on television, and delighted to bring their diverse and growing portfolio of programming to our home entertainment consumers. Racing Extinction is a powerful and topical documentary by an acclaimed filmmaker that has taken television audiences by storm, and it reflects the world-class quality of Discovery’s great pipeline of content,” said Lionsgate home entertainment president Ron Schwartz.

     

    “We’re delighted to partner with Lionsgate, which operates one of the industry’s leading home entertainment businesses, and eager to leverage their marketing prowess and distribution expertise for titles across our portfolio. Lionsgate is a strong partner and Racing Extinction is an ideal title to launch our partnership and create new opportunities for both our companies,” added Discovery Communications SVP digital distribution and partnerships Rebecca Glashow.

     

    In addition to Lionsgate’s own film and television pipelines and the Discovery Communications content announced today, the company’s home entertainment business distributes content from other leading third-party suppliers including STUDIOCANAL, Miramax, A24 and Roadside Attractions.

     

    The agreement extends the strategic relationship between the two companies announced last month, under which Discovery Communications agreed to purchase five million common shares of Lionsgate. Liberty Global also purchased five million common shares, resulting in each company having an approximately 3.4 per cent shareholding of Lionsgate’s current outstanding shares. Discovery Communications president and CEO David Zaslav and Liberty Global president and CEO Mike Fries also were named to the Lionsgate board of directors.

  • Q3-2015: Discovery’s US Networks mitigate International Networks revenue drop due to forex

    Q3-2015: Discovery’s US Networks mitigate International Networks revenue drop due to forex

    BENGALURU:  Discovery Communications, Inc. (Discovery) reported a 0.7 per cent drop in revenue in the quarter ended 30 September, 2015 (Q3-2015, current quarter) at $1557 million as compared to the $1568 million in the corresponding year ago quarter. Its US networks reported eight per cent growth in revenue to $781 million (50.1 per cent of Total Revenue or TR) in the current quarter as compared to the $723 million (46.1 per cent of TR) in Q3-2014 and hence mitigated the nine per cent drop in international Networks revenue. The company’s International Network revenue in the current quarter declined to $740 million (47.5 per cent of TR) from $813 million (51.8 per cent of TR) in the corresponding quarter of last year. Discovery says that revenue at its International Networks declined primarily due to currency effects. 

     

    Discovery’s Adjusted Operating Income Before Depreciation and Amortization( (OIBDA) decreased nine per cent to $576 million, as four per cent growth at US Networks was more than offset by a 21 per cent decline at International Networks, primarily due to currency effects, and a small operating loss at ‘Education’ and ‘Other’.

     

    “Discovery’s unique portfolio of assets and global brands drove yet another quarter of strong worldwide viewership and financial results,” said Discovery president and CEO David Zaslav. “Discovery is like no other media company, propelled by our unmatched global infrastructure, local leadership, efficient global content model and sturdy position in the US, and we are confident in our ability to drive near and long-term growth and shareholder value.”

     

    Basic and dilute Earnings per share (EPS) in the current quarter increased to $0.43 as compared to the $0.41 in Q3-2014.

     

    US Networks

     

    The above mentioned US Networks revenue growth in the current quarter was driven by 12.3 per cent growth in Distribution and 5.7 per cent growth in Advertising revenues. US Networks Distribution revenue increased to $357 million in the current quarter as compared to the $318 million in Q3-2014. Discovery says that Distribution revenue growth was primarily driven by higher rates and the consolidation of Discovery Family.

                                                                                                                                                                  

    US Network’s Advertising revenue in Q3-2015 increased to $410 million as compared to the $388 million in the corresponding year ago quarter. The company says that Advertising revenues increased primarily due to higher pricing.

     

    US Networks adjusted OIBDA increased four per cent to $443 million (56.7 per cent margin) in the current quarter from $426 million (58.9 per cent margin) in Q3-2014. Excluding the consolidation of Discovery Family, adjusted OIBDA was relatively flat, as revenue growth was offset by an 11 per cent increase in operating expenses, mainly due to higher content amortization and marketing costs.

     

    International Networks

     

    Adjusted OIBDA of the segment declined 21.3 per cent to $218 million (29.5 per cent margin) in Q3-2015 from $277 million (34.1 per cent margin) in Q3-2014. As mentioned above, International Networks revenue and adjusted OIBDA declines in the current quarter were due to changes in foreign currency exchange rates.

    International Networks Distribution revenue declined 2.6 per cent in the current quarter to $419 million from $430 million in Q3-2014. International Networks Advertising revenue in Q3-2015 declined 14.2 per cent to $289 million from $337 million in the corresponding quarter of last year.

     

    Discovery says that excluding currency effects and the impact of Eurosport and SBS Radio, total revenues were up nine per cent. Distribution revenues, excluding the impact of Eurosport and currency effects, grew eight per cent mainly from increased subscribers and rates in Latin America as well as increased subscribers in CEEMEA. Advertising revenues, excluding the impact of Eurosport, SBS Radio and currency, were up 12 per cent, primarily due to higher volume and prices in Latin America and higher ratings, prices and volume in Southern Europe.  Other revenues, excluding the impact of Eurosport, SBS Radio and currency, decreased $2 million, primarily due to lower program sales. 

     

    The company informs that excluding the impact of Eurosport, SBS Radio and currency, Adjusted OIBDA was up four per cent, reflecting the nine per cent revenue growth partially offset by a 13 per cent increase in operating expenses. The higher operating expenses were primarily due to increased content expenses and personnel costs.

     

    Education and Other

     

    Education and Other revenue for Q3-2015 increased by $1 million. Adjusted OIBDA decreased by $8 million compared to Q3-2014 due to additional investments in education primarily related to digital textbooks, higher production costs associated with greater utilisation of our in-house production companies, and higher personnel costs.

     

    The segment reported revenue of $36 million in the current quarter as compared to $35 million in Q3-2014. Adjusted OIBDA in Q3-2015 was negative $5 million as compared to positive adjusted OIBDA of $3 million in Q3-2014.

     
  • Rupert Murdoch lauds Modi; US CEOs call for speedy TV digitisation

    Rupert Murdoch lauds Modi; US CEOs call for speedy TV digitisation

    MUMBAI: There are some leaders who leave a good impression and then there are those who leave a lasting impression on others’ mind, and Indian Prime Minister Narendra Modi definitely belongs to the latter type. 

    In his recent meeting with the Fortune 500 CEOs at the iconic Waldorf Astoria Hotel in New York, Modi not only successfully brought up the burning issues of Indian media and digitisation to the world platform, but also instilled a sense of camaraderie amongst the executives, whose net worth, as per the media buzz, was $4.5 trillion!

    The proof of the pudding lay in the superlative address that 21st Century Fox chairman Rupert Murdoch gave Modi through his tweet after the event.

    “Great hour with Indian PM Modi. Best leader with best policies since independence, but massive task to achieve in most complex nation,” said Murdoch.

    Apart from the senior Murdoch, the CEOs present at the roundtable meeting chaired by Modi included 21st Century Fox CEO James Murdoch, News Corp  CEO Robert Thompson, Star India CEO Uday Shankar, WPP CEO Martin Sorrell, Discovery Communications president and CEO David Zaslav, Sony Entertainment CEO Michael Lynton, Interpublic Group of Companies CEO Michael Roth, Vice Media CEO Shane Smith, Time Warner CEO Jeff Bewkes, A&E Networks CEO Nancy Dubuc, Visy Industries chairman Anthony Pratt, Route One Investment Company’s William Duhamel and ValueAct Capital CEO Jeff Ubben.

    While the CEOs were enthusiastic about the digital transformation that is taking place in India through the Digital India initiative, they called for speeding up of television digitisation, and strengthening of the cellular (mobile) infrastructure.

    According to the head honchos, the current strong trajectory of the Indian economy made it at a unique moment to accelerate growth in this sector.

    Post the meeting, Modi tweeted his pleasure in seeing the executives enthusiastic about being part of Digital India and the role of media in it. “Met top American CEOs from media & entertainment sector. They were enthusiastic about the change @_DigitalIndia initiative in driving,” he said before craftily leading in the major issues that were discussed among the executives in the congregation earlier.

    “My interaction with Fortune 500 CEOs was on investment opportunities in India & why they must come & @makeinindia! Digital technology has a vital role in making democracy stronger & in overall human resource development,” he tweeted.

    Modi painted the government's vision to connect the 600,000-odd villages in India with broadband and emphasised that digital technology will increasingly play a major role in further strengthening democracy and India's development narrative. He also highlighted how Digital India posed as a great opportunity for the international media companies.

    As evident from the PM’s tweets, foreign direct investment (FDI) formed a large chunk of the round table and the 90 minute soiree. “Foreign direct investment all over the world has fallen. But in India, it increased by 40 per cent. This reflects confidence in the Indian economy,” Modi was heard pointing out the executives right before they sat down for dinner. “Reform in governance is my number one priority. We are for simplified procedures, speedy decision-making, transparency and accountability,” he assured the prospective investors.

    The topic that dominated most of the evening was the role that the media and entertainment industry can play in development and generation of employment opportunities in India.

    Modi also touched upon the importance of a smoother Intellectual Property Rights (IPR) regime in the digital era.

    Pegging his argument on India’s value for intellectual property he said, “We are committed to protecting IPR, that's essential to fostering creativity.”

    He also upheld the importance of regional languages in India and suggested to the CEOs that India represents both the biggest opportunity and the biggest challenge for them. He also urged them to keep regional languages in mind, as they firm up investment plans for India. “Explained to media CEOs why India is a great opportunity for them & how many regional languages makes India even more special to invest in,” Modi tweeted.

    “The government has already undertaken a massive amount of reforms. Key message from the US companies was keep doing what you are doing. I had a great meeting, there was a constructive dialogue in the spirit of collaboration. We are looking at India trying to get foreign direct investment,” said J P Morgan CEO James Dimon.

    As per  India's foreign office spokesperson Vikas Swarup, Modi took keen interest to personally interact with every CEO, and understand the executives’ areas of concern that his government could address and resolve.

    The Prime Minister emphasised that he saw a key role for digital technology in further strengthening democracy, and in India’s development narrative.

  • Discovery taps DirecTV’s Paul Guyardo as chief commercial officer

    Discovery taps DirecTV’s Paul Guyardo as chief commercial officer

    MUMBAI: Discovery Communications has tapped veteran media and retail industry executive Paul Guyardo as chief commercial officer effective 5 October, 2015.

    Guyardo joins from DirecTV where he was executive vice president, chief revenue and marketing officer. 

    In this newly created position at Discovery Communications, Guyardo will oversee US ad sales, digital media, licensing and consumer products, consumer insights and data analytics. He will report to Discovery Communications president and CEO David Zaslav and be based at Discovery’s New York headquarters.

    “Amid a rapidly evolving industry and shifting audience behavior, Discovery has maintained a steady, long-term growth strategy of investing in quality content, launching new networks and products and diversifying our IP mix to strengthen our brands and offerings. Our go-forward success in a random-access world depends on how well we innovate and monetize our content and brands across platforms. Paul brings a track record of results in growing businesses and creating consumer-centric strategies to launch products, create new revenue streams and engage viewers. Adding him to the management team is a major win for Discovery, our business partners and our audiences, and I look forward to his leadership in creating new ways to drive value for our businesses across platforms now and into the future,” said Zaslav.

    In his new role with Discovery, Guyardo will be charged with leveraging his significant expertise to expand the ways Discovery monetizes its portfolio of valuable assets to distributors, advertising partners and directly to consumers. He also will be responsible for working with Discovery Networks International to drive its burgeoning international direct-to-consumer business, as well as overseeing emerging revenue streams including the company’s global licensing, consumer products and footage sales businesses.

    “Discovery Communications has tremendous content and brands, passionate consumers and a world-class leadership team that I’m honored to join. The potential for continued growth is enormous and I look forward to getting started,” added Guyardo.

    Guyardo joins Discovery following an accomplished career in the media, retail and consumer products industries. At DirecTV, he was responsible for all functions that drove the company’s $26 billion in annual US revenue including all sales and distribution channels, marketing, advertising, pricing & packaging, traditional ad sales and new addressable and digital ad platforms, directv.com, sports, premium channels and on-demand businesses, customer retention, product management, consumer research, business analytics, public relations and creative services.

    During his 10 years at DirecTV, Guyardo’s leadership drove annual US revenue from $12.2 billion to $26 billion and the US subscriber base from 15 million to 20 million customers, due in large part to a relentless focus on customer segmentation and data analytics.

    Prior to DirecTV, Guyardo served as Kmart’s chief marketing officer following the retailer’s emergence from bankruptcy, and was part of the senior management team that quickly returned the mass retailer to sales growth and improved profitability. Before Kmart, Guyardo was executive vice president of television and marketing for HSN.

    Guyardo began his career in advertising and brand management, working on major businesses and accounts including AT&T and Johnson & Johnson amongst others.

     

  • Discovery to acquire full control of Eurosport for €491 million from TF1

    Discovery to acquire full control of Eurosport for €491 million from TF1

    NEW DELHI: Discovery Communications, which had earlier acquired a controlling stake in sports broadcaster Eurosport France by increasing its share to 51 per cent, is now acquiring full ownership for €491 million from TF1 Group.

     

    The TF1 Group will exercise a put option on its 49 per cent ownership stake as part of the companies’ previous 2012 agreement.

     

    “Discovery Communications is excited to expand and deepen our investment in Eurosport as we continue to strengthen our newest global brand with locally relevant sports rights that create value for fans, advertisers and distributors,” said Discovery Communications president and CEO David Zaslav.

     

    “In 2012, we began our investment with a 20 per cent stake in Eurosport and increased that investment to 51 per cent. Taking full control of Eurosport is the culmination of our commitment to strengthening Eurosport as a premier sports brand and fully integrating this business within Discovery’s unmatched global portfolio. I would like to thank TF1 for being great partners to us on this journey for the past few years,” he added.

     

    “We are delighted by the excellent relationship between Discovery and TF1 since we began our partnership in 2012. After an initial phase of creating value via acquisitions of equity stakes, which accelerated the development of Eurosport and the theme channels, we intend to continue our collaboration in the years ahead,” added TF1 chairman and CEO Nonce Paolini.

     

    The agreement also includes a provision for TF1 to buy back Discovery’s 20 per cent interest in TV Breizh, Histoire, and Ushua?a TV for €15 million. Both transactions are expected to close at the beginning of the fourth quarter.

     

    Since May 2014, Discovery and Eurosport have acquired more than 7,500 hours of coverage – with more than 3,300 of that live – per year across more than 50 properties signed. From UEFA Champions League, Europa League, Major League Soccer, expanding on Bundesliga soccer, Spanish cycling, Winter Ski Jumping, Wimbledon in Belgium, and FIFA Women’s World Cup across Europe, to Moto GP in Germany, Belgium and Netherlands, these new rights strengthen the Eurosport channels and bring the most compelling sporting events to local fans everywhere.

     

    In June, Discovery/Eurosport won the TV and multiplatform rights for the Olympic Games from 2018 to 2024, reinforcing Eurosport as the home of Olympic sports all year long. The agreement allows for more European sports fans to access the games on more platforms and screens than ever before. With almost half of Eurosport’s existing programming being Olympic sports, Discovery and Eurosport say they will now engage passionate fans around these key sports 365 days a year. Discovery and Eurosport will have access to the Olympic emblems and the rich Olympic video library and archive, which will further solidify Eurosport’s position as the pan-European home of Olympic sports.

  • Discovery to acquire TF1 Group’s controlling interest in Eurosport

    Discovery to acquire TF1 Group’s controlling interest in Eurosport

    (Silver Spring, Maryland and Paris, France):  Discovery Communications and TF1 Group today announced that the former  would acquire a controlling interest in Eurosport International through an extension of their larger strategic partnership first announced in December 2012. The deal will increase Discovery’s interest from 20 to 51 per cent,  accelerating what was in the original agreement by nearly one year.

     

    “Eurosport is one of the strongest, most dynamic sports platforms in the world.  Over the past year, as we have been working directly with our partners from TF1, it became clear that combining the power of Eurosport’s brands and audience reach with Discovery’s network portfolio, boots on the ground, and country-specific expertise creates an unrivaled and powerful offering for viewers, advertisers and affiliates,” said David Zaslav, President and CEO of Discovery Communications. 

     

    “Today’s announcement underscores Discovery’s strategy to support already strong organic growth with targeted acquisitions and partnerships. This deal will enable our industry-leading International team and its new leader, JB Perrette, to create new value for our business partners by developing and sharing programming across channel brands, and building a stronger and more diversified network portfolio. We are privileged to continue our successful relationship with TF1 Group and look forward to growing Eurosport for many years to come.”

     

     

    The flagship Eurosport network reaches 133 million homes across 54 countries in 20 languages. Eurosport’s brands and platforms also include: Eurosport 2 reaching 69 million households across 51 countries; Eurosport HD, the high definition simulcast of Eurosport, available in 32 million homes in 48 countries; Eurosport Asia-Pacific reaching 16 countries; and Eurosportnews, a 24-hour news channel and online hub, providing an up-to-the-minute sports news feed available in 48 countries.

     

     

    “With its successful track record of investing in quality content and building global brands, Discovery Communications is perfectly positioned to further expand and increase the value of Eurosport,” said Nonce Paolini, Chairman and CEO of TF1. “Eurosport’s vast sports platform coupled with Discovery’s extensive network portfolio will entertain and engage audiences and generate additional revenue streams for our business associates and distribution partners globally.”

     

    Discovery was one of the first U.S. media companies to launch channels in Europe in 1989 and has invested steadily and significantly in its international business for 25 years. The combined reach of Discovery Communications, Eurosport and the 2013 acquisition of SBS Nordics, will be 2.7 billion cumulative subscribers across nearly 200 networks spanning more than 220 countries and territories worldwide. Discovery Communications will strengthen its leadership as the #1 pay-TV programmer in the world. 

     

     

    Today’s agreement was based on an average enterprise valuation for the Eurosport Group of €902 million (approximately $1.2 billion), partly corresponding to the initial valuation and partly to a higher valuation linked to the control of the company. From this Group valuation, the value of Eurosport France (€85 million, approximately $115 million) has been deducted. TF1 expects to retain its 80% interest in Eurosport France until at least January 1, 2015. Also, today’s announcement does not impact the other two elements of the original deal – the 20% interest Discovery acquired in TV Breizh, Histoire, Ushua?a TV and Stylía channels, and a production alliance with TF1 Group. TF1 will retain the ability to exercise a put option over the remaining 49%, which would potentially increase Discovery’s ownership to 100%.

     

    The closing of the deal is subject to customary closing conditions, including regulatory approvals, and is expected to occur in the coming months.  

     

    Rothschild acted as financial advisor to Discovery Communications on this transaction, and DLA Piper served as its legal advisors. Darrois Villey Maillot Brochier served as legal advisors to TF1 on this transaction.

     

    About TF1

     

    TF1 (NYSE Euronext Paris: FR0000054900 / TFI) is an integrated media group with a range of businesses in high-growth segments. Its corporate mission is to inform and entertain. In freeview television, the Group’s channels are TF1 (the major events channel, no. 1 in France), TMC (no. 5 in France, and no.1 digital terrestrial channel), NT1, and HD1. The TF1 Group is also present in pay TV with Eurosport (the leading pan-European sports broadcasting platform, received by 133 million households in Europe), TV Breizh (France’s no 1 cable/satellite channel), Ushua?a TV, Histoire, Stylía and LCI. The TF1 group’s activities span the entire value chain in the broadcasting industry. TF1 has also created a broad range of merchandising spin-offs from its main channel. Harnessing the growth of the Internet and new technologies, TF1 produces, develops and publishes new interactive content and services for the Web, smartphones, tablet computers and connected TV. For more information please visit www.groupe-tf1.fr.

     

    About Discovery Communications

     

    Discovery Communications (Nasdaq: DISCA, DISCB, DISCK) is the world’s #1 nonfiction media company reaching 2.5 billion cumulative subscribers in over 220 countries and territories. Discovery is dedicated to satisfying curiosity through more than 190 worldwide television networks, led by Discovery Channel, TLC, Animal Planet, Science and Investigation Discovery, as well as U.S. joint venture networks OWN: Oprah Winfrey Network and the Hub Network. Across the Nordic region, Discovery owns and operates SBS Discovery Media, a top-three portfolio of television brands that feature leading nonfiction content, as well as locally produced entertainment programs, sports and the best scripted series and movies from major studios. Discovery also is a leading provider of educational products and services to schools, including an award-winning series of K-12 digital textbooks, and a digital leader with a diversified online portfolio, including Discovery Digital Networks. For more information, please visit www.discoverycommunications.com. 

     

    MEDIA CONTACTS

     

    For Discovery Communications:

     

    Corporate Communications

    Michelle Russo, +1 240-678-6375, Michelle_Russo@discovery.com 

     

    Elizabeth Hillman, +1 240-461-3053, Elizabeth_Hillman@discovery.com 

     

    Investor Relations

     

    Craig Felenstein, +1 212-548-5109, Craig_Felenstein@discovery.com

     

    For TF1:

     

    Corporate Communications

     

    Virginie Duval, +33 1 41 41 29 59, vduval@tf1.fr

     

    Investor Relations

     

    Christine Bellin, +33 1 41 41 27 32, comfi@tf1.fr

  • JB Perrette to step into Hollinger’s shoes at Discovery Networks International

    JB Perrette to step into Hollinger’s shoes at Discovery Networks International

    Mumbai: Discovery Communications today announced that JB Perrette will become the next President of Discovery Networks International. Perrette takes over for 23-year Discovery veteran Mark Hollinger, who announced his resignation in September.

     

    “JB is one of the smartest and most versatile executives I have worked with in the media business.  Since his time at NBC as a leader in business development, distribution and digital to all the success and value he has built at Discovery, JB has it all — strong strategic vision, operational expertise and exceptional team-building skills.  This is a demanding role like no other, which I believe requires a corporate executive with a broad background to oversee all aspects of the business across 220 countries.  Having spent half his career internationally, and with a unique mix of distribution, digital, strategy and business development experience, JB is the perfect fit to lead Discovery’s international operations,” said David Zaslav, President and CEO of Discovery Communications. 

     

    Perrette will oversee the company’s international business with current regional and functional leaders Dee Forbes, President and Managing Director, Discovery Networks Western Europe; Kasia Kieli, President and Managing Director, Discovery Networks Central & Eastern Europe, Middle East and Africa; Henrik Ravn, President and CEO, SBS Discovery Media Nordics; Henry Martinez, President and Managing Director, Discovery Networks Latin America/U.S. Hispanic; Arjan Hoekstra, President and Managing Director, Discovery Networks Asia-Pacific; Doug Baker, EVP and Chief Financial Officer, Discovery Networks International; Luis Silberwasser, EVP and Chief Content Officer, Discovery Networks International; Tom Keaveny, President, International Affiliate Sales; and John Honeycutt, EVP and Chief Operating Officer, Discovery Networks International, reporting to him.

     

    “Discovery’s regional leaders are simply the best global operating team in all of media,” said Perrette. “Through strong organic growth as well as selective strategic acquisitions and partnerships, Mark and the team have built Discovery Networks International’s unrivaled footprint with powerful brands that are valued by viewers, advertisers and distribution partners around the world. I look forward to working closely with the world-class DNI team and fantastic collaborators as we capitalize on that momentum and chart the next phase of growth for Discovery.”

     

    Discovery’s international business has been growing rapidly for the past several years. In 2013, Discovery completed the acquisition and integration of SBS Nordics; acquired a 20 percent stake in Eurosport, the largest pan-European sports platform; launched TLC in the UK; and grew international ratings by 25 percent – all solidifying the company’s position as the No 1 pay-TV programmer in the world. Today, profits from the DNI business have grown to a level that matches Discovery’s overall profits just seven years ago.

     

    Since joining Discovery in October 2011, Perrette has built best-in-class digital and technology organizations helping to establish Discovery’s industry-leading presence in the digital media field. With Perrette at the helm, Discovery has become a leading provider of high-quality nonfiction media across all screens. Perrette and his team led the successful acquisitions of Revision3 and DeFranco Creative, strategic investments in Lumosity and Learnist, the launches of digital/online networks Animalist and TestTube, and the implementation of innovative live online experiences such as SKYWIRE LIVE and Animal Planet L!VE. Sean Atkins will serve as the acting head of Discovery’s Digital business as the company performs an internal and external search for its next Chief Digital Officer. In addition, the IT/EOS teams, led by Kevin Loftis and Larry Laque, will now report to Andrew Warren, Chief Financial Officer of Discovery Communications.

     

    Prior to joining Discovery, Perrette spent 11 years with NBCUniversal, where he most recently served as President, Digital and Affiliate Distribution, and Content Distribution Strategy, leading North American distribution of television and film content across platforms. He also helped launch new digital channels Sleuth (now Cloo), Chiller and Universal HD and played a leadership role in developing the industry-leading digital venture, Hulu. Perrette’s previous roles at NBC Universal included CFO of NBC Universal Cable, CFO of Bravo Media, and VP of NBC Business Development. Before joining NBC in 2000, Perrette was a member of General Electric’s top leadership development program based in London, and at CS First Boston in London and Toky