Credit analysts have said that Discovery is performing well in the wake of its recent quarterly results with its international business a particular strength.
Moody’s added that the channel operator can afford its planned continued investment in loss-making cable channel OWN.
Moody’s noted: “Discovery continues to perform well with audience ratings, revenue and EBITDA growth at or near the top of its cable network peers, including particularly strong growth generated from its broad global distribution platform.”
The credit ratings agency added that it estimates Discovery will have invested over US$400 million (€310 million) in Oprah Winfrey joint venture network OWN by the end of the year, on top of the US$273 million worth of assets it contributed at the inception of the channel.
Moody’s noted: “Discovery indicated its investment in OWN in 2012 would be smaller than 2011 (roughly US$150 million was spent in 2011), but the joint venture continues to be a bigger drain on cash than originally anticipated.”