Discovery Beats Estimates

Discovery Inc ($DISCA@US)—one of the largest cable broadcasters in the world—has beaten analyst expectations as it released its 3rd quarter report on Wednesday. Sales and distribution revenue are pushing the cable conglomerate forward, especially with revenue from the European broadcast of the Tokyo Olympic Games. Revenue for the firm rose 25% for the quarter, jumping to $3.15 billion, $10 million ahead of estimates. Advertising revenue helped the company make significant gains, rising 28% in the last quarter after significant drops during the COVID-19 pandemic, earning 24 cents per share. Paid streaming subscribers across the globe rose to 20 million for the quarter, up from 17 million in the previous quarter. These figures were bolstered by the Discovery+ network that was launched at the beginning of the year. Discovery also plans to join with WarnerMedia to create a new media company to compete with Netflix ($NFLX@US) and Disney ($DIS@US), with a deal expected to close in the middle of next year. Discovery stock rose almost a percent as the news broke.