Revenues Rise, Loss Falls at Crown Media

STUDIO CITY, November 6:
Crown Media, the parent company of the Hallmark Channel in the U.S., increased
its third-quarter revenues by 17 percent to $64.5 million and lowered its loss
to $17.9 million from last year's $37.9 million.

The
revenue gain was a result of a 4-percent increase in advertising revenues to
$50 million and a 93-percent increase in subscriber fee revenues to $14.2
million.

"Our
strong operating results in the year-to-date underscore the appeal of our
programming and the increasing appreciation by our distributors and advertisers
of the value of our brand and audience," noted Henry Schleiff, the
president and CEO of Crown Media. "We are looking forward to extending this
success in the fourth quarter, our most exciting time of the year when our
themed holiday programming attracts an increasingly large audience that has
come to equate Hallmark Channel with the wholesome goodness of the
holidays."

He
continued: "While we expect that we
will be impacted by the financial difficulties facing our economy, we believe
that our channels have an inherent resiliency to withstand these challenges. As
many Americans return to the fundamental values of home and family, our channels
offer the kind of uplifting and positive programming they will be comforted by.
Our advertisers are primarily in sectors in which consumers may continue to
spend in an economic downturn, such as packaged goods and pharmaceuticals. As
we look at our anticipated results for the full year, I am confirming my
expectations that we will deliver low double-digit growth in advertising and
increased subscriber fee revenue to generate in excess of $50 million in
adjusted EBITDA."

—By Mansha Daswani