Discovery Communications Inc (NASDAQ:DISCK) Q4 2015 Earnings Conference Call - Final Transcript

Feb 18, 2016 • 08:30 am ET

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Discovery Communications Inc (NASDAQ:DISCK) Q4 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
operator

Good day ladies and gentlemen, and welcome to the Q4 2015 Discovery Communications , Inc. Earnings Conference call. My name is Latoya, and I will be your operator for today. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes.

I would now like to turn the conference over to Jackie Burka, Vice President of Investor Relations. Please proceed.

Executive
Jackie Burka

Good morning, everyone. Thank you for joining us for Discovery Communications' 2015 fourth quarter and year-end earnings call. Joining me today are David Zaslav, our President and Chief Executive Officer, and Andy Warren, our Chief Financial Officer. You should have received our earnings release; but if not, feel free to access it on our website at www.DiscoveryCommunications.com.

On today's call, we will begin with some opening comments from David and Andy, and then we will open up the call for your questions. Please keep to one question, so we can accommodate as many people as possible. (Forward-Looking Cautionary Statements)

And with that, I will turn the call over to David.

Executive
David Zaslav

Good morning, everyone, and thank you for joining us. 2015 was a year of solid growth for Discovery Communications . While it was a year that saw a secular and economic challenges around the world, including strong currency headwinds, Discovery continued to benefit from our investments in content, brands, and IP and our ability to execute in all types of macroeconomic environments.

We experienced strong growth last year as we continued to execute on our key strategic objectives of growing global market share, launching new products and platforms, and investing in more high-quality content and brands with universal appeal across our worldwide platform, including over the past couple of years expanding and strengthening our content mix to focus in more on must-have categories that are more appealing to consumers, such as sports in Europe and kids in Latin America.

In terms of audience share, our US network delivery again outperformed the marketplace, led by Discovery Channel, Investigation Discovery, Science, Velocity, and OWN. We continued to capture more viewers, with our 11% portfolio share across cable.

Most notably, Discovery Channel was the Number 1 non-sports cable network for men for the year, had its most-watched year ever across all demos, and grew total audience in the US by 12%, with women up high-single digits year-over-year.

Investigation Discovery continues to grow and prosper in ways the marketplace still hasn't given full value. ID was the Number 1 network for women in total day in the full fourth quarter, and Number 3 for the full year in the United States. For four years, 16 consecutive quarters in a row, ID has been the Number 1 network for length of tune in all of television in total day delivery; just an incredible performance.

This performance also means that ID has significant opportunity to grow CPMs in recognition of this delivery strength. Last year, ID improved pricing, increased revenue, and drew many new advertisers. The mystery and crime genre continues to pay and play