Discovery Communications 3Q earnings balloon

The owner of Discovery Channel, TLC and Animal Planet earned $134 million, or 44 cents per share, up from an adjusted $7 million, or 3 cents per share, in the third quarter of last year.

Revenue rose 11 percent to $845 million from $760 million, buoyed by a 16 percent increase in revenue for international networks and a 6 percent gain from U.S. networks.

Discovery blew past the average estimates of analysts polled by Thomson Reuters, which expected the company to post a profit of 18 cents per share and revenue of $824 million.

Discovery, which went public in September, adjusted its 2007 earnings so results could be compared with the 2008 third quarter. Discovery said the predecessor company included some assets that were not present in the new company, so adjustments were necessary.

Discovery's U.S. networks recorded revenue of $498 million, as advertising revenue rose 5 percent and distribution revenue grew 8 percent.

Revenue from international networks rose to $300 million on the strength of distribution and helped by the sale of Discovery programs in the U.K.

Discovery said it expects 2008 revenue of $3.44 billion to $3.48 billion, and earnings from continuing operations of $300 million to $340 million.

In June, Discovery Holding Co. announced that it was combining its 67 percent interest in Discovery Communications LLC with Advance/Newhouse Programming Partnership's 33 percent stake in the unit. The new company, Discovery Communications Inc., went public in September.

Shares of Discovery rose $1.34, or 11.1 percent, to $13.43 in afternoon trading. The stock has ranged from $10.02 to $28.35 since its IPO.