Dougle-Digit Gains at Scripps Networks

KNOXVILLE: Consolidated revenues rose 40 percent to $509 million at Scripps Networks Interactive in Q3, boosted by the addition of Travel Channel and advertising and affiliate revenue gains across its portfolio of lifestyle networks.

Advertising revenues in the period totalled $319 million, a 34-percent rise, while affiliate fees were up 72 percent to $140 million, thanks to the strong performance of its lifestyle channels. Over revenues at the Lifestyle Media segment were $462 million, a 42-percent increase, with a segment profit of$232 million, a 55 percent increase.

Also a strong spot was the Interactive Services segment, where revenues were up 7.2 percent to $41.8 million, delivering a profit of $7.1 million.

Overall net income in the third quarter was $102 million, up from $65.3 million a year ago.

“Scripps Networks Interactive had an outstanding third quarter, benefitting from robust affiliate revenue growth and continued strong advertising demand, particularly for our targeted lifestyle television networks,” said Kenneth W. Lowe, the chairman, president and CEO of the company. “All of our networks and our online shopping related businesses contributed to double-digit revenue and earnings growth.”

He continued, “At the Travel Channel, we’ve significantly expanded our growing list of national advertisers while simultaneously increasing the size of our audience. We’re successfully leveraging the popularity of Travel’s stellar talent, including Adam Richman, Anthony Bourdain and Andrew Zimmern, and are deep into developing new programming concepts which you’ll be seeing in the months ahead. The newly rebranded Cooking Channel is delivering positive results with audiences steadily increasing each month since the network’s debut. Compared with Fine Living’s footprint last September, total-day audiences have increased 43 percent and prime time has improved 15 percent. Cooking Channel recently launched two new shows, one of which, Week in a Day with Rachael Ray is the network’s highest rated series premiere yet. And, we’ve turned the corner at Shopzilla, where we’ve been working diligently to improve our position in the market with both consumers and advertisers to set the stage for renewed growth. We view Shopzilla’s positive results for the quarter as the inflection point in our efforts to restage this business and enhance its competitive position as one of the most influential players in online retail.”

For 2010, Scripps is forecasting a full-year operating loss for its international channels at between $10 million and $12 million.