Scripps Networks Earnings Slide Following Shopzilla Sale
Scripps Networks Interactive reported strong results from its cable networks in the second quarter, but took a hit from a money-losing Internet business.
Net income fell 27.1% to $77.4 million, or 46 cents a share, from $106.2 million, or 63 cents a share a year ago, because of costs from the company's Shopzilla online comparison shopping business, which was sold at a loss during the period. Income from continuing operations grew 36% to $133 million.
Revenues were up 12% to $534 million, with advertising revenues ahead 13% to $374 million.
"The outstanding marketing power of Scripps Networks Interactive's television and Internet brands is evident in the company's solid second quarter financial results," Kenneth Lowe, chairman, president and CEO, said in a statement.. "HGTV, Food Network and Travel Channel - our fully distributed networks - consistently lead their respective content categories and genres on both TV and the Web, aggregating large and targeted audiences that are highly valued by media consumers, our advertising customers and distribution partners."
He added that Scripps Networks Interactive's "premium-tier channels in the home and food categories, DIY Network and Cooking Channel, generated strong revenue growth as an increasing number of viewers discovered the exceptional vitality and utility of the creative original programming that's defining these unique and exciting brands. Put it all together, and the company succeeded in delivering solid double-digit growth in revenue and segment profit during the second quarter and is on track for another outstanding year."
The company's Lifestyle Media segment, which includes its cable networks, reported a profit of $289 million, up 21.9% from a year ago. Revenues rose 11% to $527 million.
Expenses were up 4.7%, mostly because of increased marketing expenses to promote programming initiatives and higher personnel costs.
The company disclosed the revenue of each of its cable networks:
•Food Network, up 8.2% to $187 million;
•HGTV, up 8.9% to $189 million;
•Travel Channel, up 15% to $79.3 million;
•DIY Network, up 27% to $29 million;
•Cooking Channel, up 17% to $15.9 million (excluding distribution incentives relating to rebranding Fine Living Network to Cooking Channel, revenue was up 30% to $19 million);
•Great American Country, down 31% to $5.9 million.
Revenue from the company's digital businesses, including its network-branded websites, was $27.4 million, up 28%.
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Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.