Scripps Networks Interactive reported higher third quarter profits and an increase in advertising sales
Net income rose 2% to $131 million, or 93 cents per share, in the quarter, from $129 million, or 87 cents a share, a year ago.
Revenues rose 4.5% to $644 million. Advertising sales increased 5.4% to $432 million and affiliate revenue was up 3.8% to $198 million
The results were mixed because Wall Street analysts had expected 84 cents a share in earnings, which Scripps Networks beat, but $651 million in revenue, where the company fell short.
"Our networks consistently deliver the upscale audience that so many advertisers want to reach, as well as the high quality content that both traditional and new distribution platforms demand. Our compelling lifestyle video programming engages and inspires millions of consumers, across multiple geographies, devices and demographics," CEO Ken Lowe said in statement. "These solid third-quarter operating results demonstrate our unique competitive advantage, and our ability to create long-term value for shareholders in a changing marketplace."
Scripps Network's lifestyle media segment, which includes cable channels like Food Network and HGTV, reported a profit of $296 million, up 2.5% from a year ago. Revenue rose 4.2% to $618 million. Ad revenue was up 5%, a bigger gain than other programmers have reported this quarter. Affiliate revenue was up 3.2% to $187 million.
The company said that operating revenues at HGTV rose 7% to $234 million, Food Network was up 4.1% to $212 million. Travel Channel was down 4.9% to $84 million. DIY jumped 9% to $37 million, Cooking Channel gained 7.2% to $28 million and Great American Country was up 16.9% to nearly $8 million.
Scripps Networks digital businesses had operating revenues of $23 million, down 11%.
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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.