• by Wayne Friedman , July 31, 2017

On the same day it announced its $14.6 billion merger with Scripps Networks Interactive, Discovery Communications said its recent-quarter financials resulted in a slight revenue increase in U.S. and international operations.

For the second quarter, Discovery U.S. networks' revenues rose to $890 million -- with a 4% increase in distribution fees to $400 million and advertising revenues unchanged at $472 million.

International revenue grew 3% to $811 million -- with distribution revenues 7% higher at $457 million and ad revenues 3% lower at $333 million.

Overall company revenues were up 2% to $1.75 billion, while net income was down 8% to $374 million. Without the effects of the currency exchange rate, net income would have climbed 3%.

John Janedis, media analyst for Jefferies & Co., commenting on the media deal, said: “While we believe the two companies are likely better positioned together, rather than apart, the longer-term issues facing the industry still remain.”

Janedis cited lower overall TV viewership for U.S. networks and attempts to sell more networks to new digital TV providers promoting “skinny bundles.”

Other challenges include combining two reality-based TV programmers that are different and distributing Discovery’s content, which travels better internationally than Scripps'.