Discovery Raises Outlook Slightly On Ad Growth

Discovery

The advertising recovery is helping fuel Discovery Communications’ optimism, as the cable net raised its outlook for the full year. As the company prepares to finally launch the Oprah Winfrey Network (OWN) after the new year, it’s ending 2010 in an even stronger position than it began. U.S. networks’ revenues grew 11 percent to $585 million as advertising and distribution gains more than offset lower representation revenue. Advertising dollars rose 16 percent, thanks in part to higher CPMs, which Discovery said was driven by larger ratings increases.

By the end of the year, Discovery said it expects total revenue could reach $3.8 billion after predicting revs around $3.7 billion. Profits are expected to range between $650 million to $700 million.

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