Crown Media Narrows Net Loss

STUDIO CITY, May 7: With
revenues up 32 percent to $70.6 million in the first quarter, Crown Media
Holdings, parent company of the Hallmark Channel in the U.S., has narrowed its
net loss to $14.7 million, down from $40.2 million in the year-ago period.

The gains were driven by a
23-percent hike in ad revenues to $56.4 million and an 85-percent increase in
subscriber fee revenues to $13.9 million. Subscribers increased 11 percent to
84.2 million as of March 31, 2008.

“The first quarter of 2008
was an operating success as well as a financial success,” noted Henry Schleiff,
the president and CEO of Crown Media. “We have now completed the renewals of
all of our major distribution agreements on favorable terms which are reflected
in the growth of our subscriber license fees. Our programming continues to earn
record ratings, which we are increasingly monetizing, as our advertisers
recognize the value of the Hallmark brand and the appeal of our programming to
the baby-boomer audience, which is growing in size and buying power.”

He continued: “Last month
we entered a new chapter in our history with the launch of the high-definition
version of Hallmark Movie Channel. Continued programming success, realization
of more favorable subscriber license fees, and a strong advertising market
should have a positive impact on results for 2008.”

—By Mansha Daswani