Discovery posts stronger than expected profits as ad sales recover

Discovery, owner of channels like The Food Network, TLC and Animal Planet, beat Wall Street’s second-quarter expectations, due in part to the rebound in advertising sales following last year’s economic fallout from the pandemic.

Nonetheless, shares of Discovery fell over 5 percent in midday trading, as the company reported lower TV ratings and meager growth in streaming. “TV ratings are collapsing,” Lightshed Partners analyst Rich Greenfield said on CNBC Tuesday. “Advertising revenues are lower in 2021 than in 2019”