Media company Discovery Communications Inc., which operates television channels such as TLC and Animal Planet, reported fourth-quarter earnings that beat analyst expectations due to modest ad growth in the United States.

Fourth quarter net income increased 39 percent to $304 million, or 52 cents per share. Analysts were expecting earnings of 48 cents per share.

Revenue during the quarter increased 2 percent to $1.67 billion from $1.65 billion the previous year. The U.S. channels reported a 3 percent growth in revenue to $812 million.

Revenue growth in the international business was flat for the quarter.

“As we begin 2017, we will continue to invest in our premier global IP and brands to nourish fans across all screens, all platforms and all services to drive shareholder value and propel our business for years to come amid the rapidly changing media landscape,” said David Zaslav, president and chief executive officer, in a statement.

Higher rates contributed to a 6 percent increase in the network’s distribution growth but was offset by a decline in subscribers.

The company’s stock price closed Monday at $29.03 and has since dropped to $28.53, or 1.79 percent, as of midday Tuesday.

The Securities and Exchange Commissions filing can be found here.