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Discovery beats revenue estimates as Olympics pull in subscribers, advertisers

(Reuters) -Discovery Inc beat Wall Street expectations for second-quarter revenue on Tuesday, boosted by higher subscriber additions and advertising sales on its network ahead of the Tokyo Olympics.

The Animal Planet and TLC-owner, which is combining with AT&T’s WarnerMedia unit to create a new media business, owns the European rights to the Olympic Games.

Discovery said earlier on Tuesday that more than 275 million viewers have so far watched the Games through its platforms, representing a 10% more reach than the 2018 Pyeongchang Winter Games.

Revenue rose about 21% to $3.06 billion, beating estimates of $2.99 billion, according to IBES data from Refinitiv. International advertising sales surged 88% during the quarter, it said.

Total paid streaming subscribers globally stood at 17 million in the three months ended June, primarily consisting of Discovery+ subscribers, its premium streaming service launched in January.

Discovery is betting on unscripted programming in categories, including food and home improvement, available on its streaming service to compete in a crowded market.

Net income more than doubled to $672 million, or $1.01 per share.

Shares of Silver Spring, Maryland-based Discovery rose 3% in premarket trading.

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