Discovery navigates Brexit uncertainty

US factual giant Discovery Communications has said it will “work closely” with UK and European Union (EU) leaders to shape its future following Britain’s decision to leave the EU last week.

Discovery’s acquisitions of Eurosport, SBS Nordic and All3Media mean it is perhaps more vulnerable to a downturn in the British pound and the euro than other US media groups, particularly as around half its revenues come from abroad.

The Dow Jones US Media index was down 3.6% to its lowest level since March following the UK’s ‘Brexit’ vote on Thursday. All large US media firms were affected.

In a statement, Discovery said it “respects the decision of the UK people in this historic vote to leave the European Union” and was working to minimise any potential damage to its financial performance.

“As a global company with a significant presence in 220 markets, we are accustomed to operating in an industry and a world where change is constant,” the statement read.

“We will work closely with UK and EU leaders to successfully navigate this change and find new opportunities to shape our future. In the short term and medium term, our currency hedging programme will significantly minimise the foreign-exchange impact of the Brexit vote on our financial performance.”

Discovery operates a broad portfolio of pay and free TV channels across Europe. It bought Eurosport in 2014 and, together with Amazon, recently acquired rights to the German football league in a deal worth more than €4.6bn (US$5.2bn).

It is also preparing to take Wimbledon tennis coverage to pay TV in the UK for the first time, subject to regulatory approval.

Discovery CEO David Zaslav recently said the company’s investment in sports rights has already moved from US$150m to US$300m a year, with US$5bn committed to sports IP over the next decade.

The firm has acquired rights to the Summer and Winter Olympics from 2018 and begun sub-licensing them around Europe.