Discovery edges past quarterly revenue estimates on live sports, ad rebound

The Discovery, Inc. logo is seen on a display in the FAO Schwarz toy store in Manhattan, New York City, U.S., November 24, 2021. REUTERS/Andrew Kelly/File Photo

Feb 24 (Reuters) – Discovery Inc (DISCA.O) beat analysts’ estimates for quarterly revenue on Thursday, buoyed by a resumption of live sports and higher advertising revenue as the media firm seeks to complete a planned merger with AT&T’s (T.N) WarnerMedia unit.

Total paid streaming subscribers globally stood at 22 million at the end of the fourth quarter, up from 20 million in the previous quarter.

The numbers include subscribers to the Discovery+ streaming service launched in January, the company said.

Net income fell to $38 million, or 8 cents per share, from $271 million, or 42 cents per share, a year earlier.

Revenue rose 10% to $3.19 billion in the quarter ended Dec. 31, above an estimate of $3.12 billion, according to Refinitiv data.

The merger with WarnerMedia will create Warner Bros. Discovery and help better compete with streaming rivals such as Netflix Inc and Walt Disney Co (DIS.N). The deal is expected to close in the middle of this year.

Reporting by Chavi Mehta and Eva Mathews in Bengaluru; Editing by Sriraj Kalluvila

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