Advertising Revenues Boost Scripps Networks’ Results

CINCINNATI: Reporting gains in both advertising and affiliate revenues, Scripps Networks Interactive posted a first-quarter profit of $72.5 million, a 20.5-percent increase on the same period last year.

Total revenues at the company were up 32 percent to $469 million. Excluding Travel Channel, which was acquired in December, the company’s consolidated revenue increased 16 percent to $411 million.

The Lifestyle Media segment, which includes HGTV, Food Network and Travel Channel, reported a 38-percent revenue hike to $429 million. Affiliate fees were up 72 percent to $136 million and ad revenues grew by 28 percent to $287 million. Lifestyle Media’s segment profit was $186 million, a 28-percent increase. HGTV was the company’s biggest earner, with revenues of $162 million, followed by Food Network with $152 million, Travel Channel with $56.9 million, DIY Network with $18.6 million, Fine Living Network (soon to be rebranded as Cooking Channel) with $13.8 million and Great American Country (GAC) with $6.4 million.

“Scripps Networks Interactive had an exceptionally good first quarter thanks to the healthier advertising marketplace, solid audience growth at our three flagship television networks and a strong, double-digit increase in affiliate revenues,” said Kenneth W. Lowe, chairman, president and CEO of Scripps Networks Interactive. “The ever-rising popularity of HGTV, Food Network and Travel Channel contributed significantly to our solid financial results for the first three months of the year. We’re also making good progress executing our strategic plan for 2010, which includes fully integrating Travel Channel, the debut of the new Cooking Channel during Memorial Day weekend and exporting our powerful brands across the globe. Based on what we’re experiencing in the early going, 2010 is shaping up very positively for the company and its shareholders.

For 2010, Scripps is forecasting it will record an operating loss on its international business of between $11 million and $16 million, after discussions ended for its partnership with NDTV in India.