Investors have been bracing for bad news from TV networks that are catering to an ever-shrinking pool of U.S. cable subscribers. Pessimism around what that trend will mean for Discovery (NASDAQ: DISCK), which relies on large audiences to attract advertising clients, contributed to the stock’s 25% slump over the past 12 months.
This week the pay-TV specialist announced earnings results that provided clues about how management can navigate that risky environment while keeping sales and profit growth intact.