Cost of revenues was $444m for the first quarter of 2011, compared to $587m for the same period of 2010. Operating income was $507m for the first quarter of 2011, compared to $282m for the same period of 2010.

For the first quarter of 2011, income before income taxes was $451m, compared to $220m for the same period of 2010. Provision for income taxes was $146m, compared to $47m for the same period of 2010.

Net income for the first quarter of 2011 was $305m, compared to $173m for the same period of 2010. Free cash flow was $206m for the first quarter of 2011, an increase of $92m from the first quarter of 2010, due to increased operating performance and lower taxes and interest payments.

For the full year ending December 31, 2011, the company expects total revenue between $4 billion and $4.12 billion, adjusted OIBDA between $1.85 billion and $1.92 billion, and net income available to the firm stockholders of $1 billion to $1.07 billion.

Our outlook incorporates current foreign exchange rates for revenues and expenses and the current share price for mark-to-market stock-based compensation calculations.

David Zaslav, president and CEO of Discovery, said: “Once again this quarter, we recognized the value of our increased viewership through double digit advertising gains that further built upon the strength we demonstrated throughout 2010.

“Moving forward, with advertising revenues expanding and predictable distribution revenues continuing to grow, we remain focused on delivering sustained operating leverage and free cash flow growth, while also continuing to invest in Discovery's diverse set of brands and platforms around the world.”

Will the firm further improve its revenues in Q2?

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