Discovery Communications, Inc. (NASDAQ:DISC.K) Q1 2016 Earnings Conference Call - Final Transcript

May 05, 2016 • 08:30 am ET


Discovery Communications, Inc. (NASDAQ:DISC.K) Q1 2016 Earnings Conference Call - Final Transcript


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Good day ladies and gentlemen and welcome to the Q1 2016 Discovery Communications Earnings Conference Call. My name is Mark and I'll be operator for today. At this time all participants are in listen-only mode, later we will conduct a question and answer session. [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.

Jackie burka

Good morning, everyone. Thank you for joining us for Discovery Communications First Quarter 2016 conference 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

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. Before we start, I would like to remind you that comments today regarding the company's future business plans, prospects and financial performance are forward looking statements that we make pursuant to the safe harbour provisions of the private securities litigation Reform Act of 1995.

These statements are made based on management's current knowledge and assumptions about future events. And they involve risks and uncertainties that could cause actual results to differ materially from our expectations. In providing projections and other forward looking statements, the company disclaim any intent or obligation to update them. For additional information on important factors that could affect these expectations. Please see our annual report for the year ended December 31, 2015 and our subsequent filings made with the US Securities and Exchange Commission.And with that, I will turn the call over to David.

David Zaslav

Good morning, everyone and thank you for joining us. I'm pleased about Discoveries operating and financial momentum, with current trends in the US particularly strong and international investments driving new value across our portfolio. While we continue to face certain secular and economic challenges in various markets around the world, we are evolving and a consumer video marketplace with 7 billion worldwide screens and are optimistic about our global growth profile in the more than 220 markets.

As Andy will discuss in more detail, we are focused on spending more on growth in content and in direct to consumer platforms, while we're relentlessly driving down costs growth in all non content cost areas. If it is not going to nourish audiences or help us grow long term, we are attacking. As a result, I'm pleased to announce today that we will have real constant currency margin expansion for the full 2016 year, the ultimate goal is to maximise growth.

First and foremost, in our linear TV business, while aggressively pursuing new opportunities to diversify and strengthen our content and bring it to more screens and more people around the world. These cost savings