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Discovery _ DISCOVERY , INC . REPORTS THIRD - QUARTER 2021 RESULTS New York , NY November 3 , 2021 : Discovery , Inc. ( " Discovery ” or the “ Company ” ) ( NASDAQ : DISCA , DISCB , DISCK ) today reported financial results for the quarter ended September 30 , 2021 . David Zaslav , President and Chief Executive Officer of Discovery said , " We made great strides in the quarter operationally , financially and creatively . The team drove solid momentum in our direct - to - consumer business , which we grew to 20 million paid subscribers at quarter end on the strength of our global brands and fan - favorite content , including the Summer Olympic Games and Shark Week . Additionally , we delivered double - digit growth in both advertising and distribution revenues , as we doubled next generation revenues year over year . This strong performance once again drove very healthy cash flows during the quarter , further strengthening our balance sheet and financial profile . We are very excited about our pending merger with WarnerMedia and the opportunity to bring these two companies together , combining iconic and globally cherished franchises and brands , and positioning us to more efficiently drive global scale across the combined portfolio . " • Third - Quarter 2021 Financial Highlights Total revenues of $ 3,150 million increased 23 % , as reported and ex - FX ( ¹ ) , compared to the prior year quarter . - U.S. advertising revenues increased 5 % and distribution revenues increased 21 % ; and International advertising revenues increased 28 % , or 26 % ex - FX , and distribution revenues increased 7 % , or 6 % ex - FX . Net income available to Discovery , Inc. was $ 156 million and diluted earnings per share was $ 0.24 . Total Adjusted OIBDA ( 2 ) was $ 726 million . • Cash provided by operating activities was $ 811 million and free cash flow ( 3 ) was $ 705 million . Three Months Ended September 30 , Nine Months Ended September 30 , Dollars in millions , except per share amounts Total revenue % % 2021 2020 Change $ 3,150 $ 2,561 23 % Ex - FX ( ¹ ) 23 % $ 2021 2020 9,004 $ 7,785 Change Ex - FX ( 1 ) 16 % 14 % Net income available to $ Discovery , Inc. 156 $ 300 ( 48 ) % $ 968 $ 948 2 % U.S. Networks Adjusted OIBDA 963 951 1 % 2,836 3,029 ( 6 ) % International Networks Adjusted OIBDA ( 79 ) 127 NM NM 287 527 ( 46 ) % ( 43 ) % Total Adjusted OIBDA ( 4 ) $ 726 $ 954 ( 24 ) % ( 24 ) % $ 2,680 $ 3,194 ( 16 ) % ( 16 ) % Diluted earnings per share $ 0.24 $ 0.44 ( 45 ) % $ 1.46 $ 1.40 4 % Cash provided by operating $ 811 $ 860 activities ( 6 ) % $ 1,914 $ 2,186 ( 12 ) % Free cash flow $ 705 $ 787 ( 10 ) % $ 1,641 $ 1,896 ( 13 ) % NM : Not Meaningful Operational Highlights • Ended Q3 with 20 million DTC Subscribers ( 5 ) , an increase of 3 million subscribers since the end of Q2 . Generated $ 425 million of Next Generation Revenues , growth of approximately 100 % versus the prior year quarter . ( 5 ) • Recently launched discovery + in Canada and the Philippines ; the app is also now available on Cox Contour TV and Contour Stream Player . • Finalized multi - year U.S. distribution agreements with DirecTV and Verizon . • Successfully broadcast the Tokyo 2020 Summer Olympic Games , which reached over 372 million people in Europe across TV and digital platforms , and delivered 1.3 billion minutes of Olympics content on our streaming services . 1