Discovery assuming 2024 Olympic Games will be in Paris
Discovery CFO Gunnar Wiedenfels, discussing the financial impact of the Olympics for 2018 and beyond on the company's earnings and deal announcement call, said the company's current expectation is that the 2024 Games will be in Paris. With that working hypothesis, "which represents our best expectations at this time," Scripps expects to recognize 10% of the total of $1.4B rights cost in the first quarter of 2018, with 30% then recognized in 2020, 15% in 2022 and 45% in 2024. For next year's Olympics, Discovery expects an additional $100M of production and other costs to also be recognized in the first quarter. Scripps does not expect the Olympic to have a material impact on full year profit in FY18, repeating its prior view that the majority of revenues will come from sublicensing.