In its third quarter operating results, Scripps Networks Interactive (SNI) has posted a 40% increase in revenues from third quarter 2009, to US$509 million. Net income attributable to SNI is at $102 million, a 56% increase over last year.
Advertising revenue also saw a significant jump in the three-month period ending September 30, up 34% to $319 million, while affiliate fee revenues also rose 72% over last year’s Q3, to $140 million.
SNI says the growth is driven by strong performance from its Lifestyle Media division, home to HGTV, Food Network, DIY Network, the new Cooking Channel and Travel Channel. Excluding the Travel Channel, advertising revenue increased 19 percent and affiliate fee revenue increased 40 percent.
‘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, chairman, president and chief executive officer of SNI. ‘All of our networks and our online shopping related businesses contributed to double-digit revenue and earnings growth.’
‘At the Travel Channel, we’ve significantly expanded our growing list of national advertisers while simultaneously increasing the size of our audience,’ Lowe said. ‘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.’
As for the Cooking Channel, which debuted in May, taking over from Fine Living Network, Lowe said it’s ‘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% and prime time has improved 15 percent.’
Lifestyle Media revenue was $462 million, up 42%, with programming expenses up 24% to $98.7 million. Revenue at HGTV was $174 million, up 14%. Food Network reported a 35% increase in revenue, to $160 million. Revenue at Travel Channel increased 14% to $62.3 million, on a pro-forma basis. Revenue at DIY Network was up 29% to $22.8 million, and revenue at Cooking Channel was $12.2 million, up 9.3%. The Cooking Channel figures include a $3.0 million increase in amortization for distribution incentives related to the rebranding of the Fine Living Network to the Cooking Channel.
The Lifestyle Media segment’s digital businesses, which include the network-branded Web sites, also saw an increase of 23%, to $21.5 million.