Discovery Communications' 4Q Sales Rise

Discovery Communications' consolidated fourth-quarter revenue grew 8 percent to $886 million, boosted by a 6 percent increase in advertising revenue and a 2 percent increase in distribution revenue, the company said.

For the year, Discovery's sales increased 8 percent to $3.13 billion, because of growth in both advertising and distribution revenue.

Discovery Communications' U.S. networks division reported flat fourth-quarter revenue at $504 million. Advertising revenue increased 11 percent, helped in part by better unit pricing, the company said.

Revenue from Discovery Communications' international networks division grew 14 percent to $309 million, boosted by advertising and distribution revenue growth, as well as favorable foreign currency exchange rates.

Revenue from the company's commerce and education group jumped 28 percent to $74 million, due to increased subscribers and improved pricing and DVD sales.

In December, Discovery Holding agreed to split off its Discovery Communications unit and combine it in a public company one-third owned by publisher Advance/Newhouse.

The move will leave Discovery Communications, maker of nonfiction cable television programming for the Discovery Channel, Animal Planet and TLC, as a stand-alone company.

Discovery Holding, which also owns Ascent Media Group, currently owns 67 percent of the Discovery business. Advance/Newhouse owns the other third.

The deal is expected to close in the second quarter.