Cable distribution and content companies are rocking this earnings season.
The headline: ad rates are rising and maybe content really is king. Discovery Communications reported 42 percent higher quarterly profit of 39 cents per share, a nickel higher than analyst expectations. The company reported 8 percent higher revenue of $879 million, and raised its full-year outlook.
Discovery is continuing a strong trend from media companies this week. Comcast, Time Warner Cable, as well as Viacom's cable networks all reported higher ad rates and cable's growing popularity. Ratings for Viacom and subscriber numbers for the cable providers continue to rise.
Discovery's numberswere particularly impressive overseas, where a 44 percent jump in international networks ad revenue helped grow the division's revenue by 16 percent. Excluding exchange rates, ad sales still grew 35 percent. Even in the US ad growth is remarkable -- up 9 percent. It's not just a rebounding ad market, though marketers including auto makers seem to be flooding back -- this rise was driven by 11 percent higher ratings at its US networks, including its namesake channel and Animal Planet.