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Discovery Communications says Eurosport deal lifted its international results in 4th quarter

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SILVER SPRING, Maryland — Discovery Communications Inc. said Thursday that its revenue improved in the fourth quarter after it took majority control of Eurosport, a European sports broadcasting network.

Discovery Communications operates cable TV channels including TLC and Animal Planet. The company bought a 20 percent stake in Paris-based Eurosport in December 2012, and in May it exercised an option to boost its stake to 51 percent. Eurosport reaches about 135 million homes in 54 countries. In the fourth quarter Discovery said its international revenue improved, counteracting a decline in revenue from the U.S.

The Silver Spring, Maryland-based company reported net income of $250 million, or 38 cents per share. If one-time amortization costs are excluded Discovery Networks said it earned 43 cents per share. It said revenue rose to $1.68 billion from $1.54 billion a year ago.

Analysts expected earnings of 41 cents per share on $1.71 billion in revenue, according to estimates compiled by Zacks Investment Research.

The company's shares rose $1.04, or 3.4 percent, to $31.94 in midday trading.

The company said it expects its annual adjusted profit and revenue to grow in the high-single digits to low double digits if changes in foreign currency exchange rates are excluded.

Discovery Communications shares have fallen 10 percent since the beginning of the year, while the Standard & Poor's 500 index has risen 2 percent. The stock has dropped 62 percent over the last 12 months.

The company paid $226 million for its initial stake in Eurosport and paid another $345 million in 2014.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on DISCA at http://www.zacks.com/ap/DISCA

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Keywords: Discovery Communications, Earnings Report

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