Page 1

Discovery - DISCOVERY , INC . REPORTS SECOND - QUARTER 2021 RESULTS New York , NY August 3 , 2021 : Discovery , Inc. ( " Discovery ” or the “ Company ” ) ( NASDAQ : DISCA , DISCB , DISCK ) today reported financial results for the quarter ended June 30 , 2021 . David Zaslav , President and Chief Executive Officer of Discovery said , " Discovery delivered very strong results this quarter as we executed well amidst a recovering global advertising market . Advertising revenue increased in every region of the globe and accelerated throughout the quarter , particularly in our International segment as revenue increased 70 % . Indeed , many key markets such as the UK , Italy , Germany , as well as a number of Latam and APAC markets , all demonstrated a marked resurgence and finished ahead of 2019. We continued to steadily execute in our emerging next generation businesses , with 17 million paying direct - to - consumer subscribers at the end of the quarter , and 18 million as of today . This contributed to 130 % revenue growth in the second quarter . Our first Summer Olympic Games have thus far been a success , supporting healthy viewing and subscriptions across both our linear and streaming platforms , and underscores the importance of our commitment and investment in marquee IP . We continue to fire on all cylinders , and I am very pleased with our momentum as we work to complete our transformational WarnerMedia transaction . " Second - Quarter 2021 Financial Highlights • Total revenues of $ 3,062 million increased 21 % compared to the prior year quarter , or 18 % ex - FX . ( ¹ ) - - U.S. advertising revenues increased 12 % and distribution revenues increased 12 % ; and International advertising revenues increased 88 % , or 70 % ex - FX , and distribution revenues increased 11 % , or 6 % ex - FX . Net income available to Discovery , Inc. was $ 672 million and diluted earnings per share was $ 1.01 . Total Adjusted OIBDA ( 2 ) was $ 1,117 million . • Cash provided by operating activities was $ 834 million and free cash flow ( 3 ) was $ 757 million . Three Months Ended June 30 , Six Months Ended June 30 , Dollars in millions , except per share % % amounts 2021 Total revenue $ 3,062 $ 2020 2,541 Change 21 % Ex - FX ( ¹ ) 18 % $ 2021 2020 5,854 $ 5,224 Change 12 % Ex - FX ( 1 ) 10 % Net income available to $ 672 $ 271 Discovery , Inc. U.S. Networks Adjusted OIBDA International Networks Adjusted 1,050 215 1,062 NM ( 1 ) % $ 812 $ 648 25 % 1,873 2,078 ( 10 ) % 193 11 % 11 % 366 400 OIBDA ( 9 ) % ( 5 ) % Total Adjusted OIBDA ( 4 ) $ Diluted earnings per share 1,117 $ 1,127 $ 1.01 $ 0.40 ( 1 ) % ( 1 ) % $ 1,954 $ 2,240 ( 13 ) % ( 12 ) % NM $ 1.22 $ 0.95 28 % Cash provided by operating $ activities Free cash flow $ 834 $ 991 757 $ 879 ( 16 ) % $ 1,103 $ 1,326 ( 17 ) % ( 14 ) % $ 936 $ 1,109 ( 16 ) % NM : Not Meaningful Operational Highlights • Ended Q2 with 17 million Direct - to - Consumer Subscribers . ( 5 ) • • • ( 5 ) Generated nearly $ 400 million of Next Generation Revenues , growth of 130 % versus the prior year quarter . Completed a successful 2021-2022 U.S. advertising upfront , delivering the largest revenue upfront in the Company's history , including more than doubling the revenue of Discovery Premiere , our cross - network , cross - platform advertising package , and Discovery Engage , our advanced advertising solution . The international linear portfolio delivered its second highest Q2 ever for viewing audiences , behind Q2 2020 , which was helped by record PUT levels . ( 6 ) 1