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Discovery borrows $500 million to weather the coronavirus storm

Aims to "maximise flexibility" in light of uncertainty caused by COVID-19

Discovery has borrowed $500 million to boost its cash facility in order to maximise its flexibility during the coronavirus pandemic.

In a statement to the SEC in the United States, the broadcaster said, “On March 12, 2020, the company drew down $500 million under the credit facility to increase its cash position and maximise flexibility in light of the current uncertainty surrounding the impact of COVID-19.”

It added that the 2020 financial outlook offered to analysts on 27 February had been superseded by the fast-spreading coronavirus pandemic causing “unprecedented economic uncertainty.”

“As a result of the unknown impact of COVID-19 on the company‚Äôs 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.

Eurosport, owned by Discovery, was due to broadcast the Games in 50 European markets.

However, the broadcaster said it is seeing a rise in viewing of its linear channels across global markets as viewers self-isolate amidst the outbreak.