Discovery Withdraws 2020 Fiscal Outlook, Draws Down $500 Million Amid Coronavirus Outbreak

Discovery disclosed in an SEC filing Tuesday that amid the outbreak of the novel coronavirus COVID-19, it has drawn down $500 million under its credit facility to boost its cash position and withdrawn its outlook for the fiscal year.

“On March 12, 2020, the Company drew down $500 million under the credit facility to increase its cash position and maximize flexibility in light of the current uncertainty surrounding the impact of COVID-19,” said the company in an SEC filing.

The parent company of Food Network, TLC and HGTV, which had previously offered up its targets for fiscal 2020 in late February, is now pulling its outlook.

“As a result of the unknown impact of COVID-19 on the Company’s financial results and the uncertainty related to its duration, as well as the impact of the postponement of the 2020 Olympic Games, the Company is withdrawing its fiscal 2020 outlook,” it said. “The Company is not providing an updated fiscal 2020 outlook at this time.”

But Discovery did also reveal that as a result of the pandemic and federal guidance to stay at home to prevent the spread of coronavirus, its networks’ ratings have increased in many markets.

“This is helping to offset attributed weakness from economic conditions, and the Company is evaluating the impact of improved ratings and delivery on its performance,” said the company.