Scripps Networks Interactive’s third-quarter earnings report has surpassed Wall Street expectations due in part to well-timed series’ premieres that led to a ratings and advertising surge across five of its six U.S. networks.
The Knoxville, Tennessee-based media conglomerate reported a profit of US$146 million, or $1.2 per share, compared to $124.6 million, or 96 cents per share, in Q3 2015.
Scripps attributed increases in per-share profit – which rose 13.5% to $1.26, excluding certain items – to growth in operating revenues along with gains on foreign currency transactions and lower interest expenses, which were “offset by lower equity earnings of affiliates in first quarter 2016.”
Operating revenues for the quarter climbed 3.5% to $803.1 million versus the year-ago period. Advertising revenues grew 5.4% to $556.4 million despite distribution revenues dropping 1.4% to $221.7 million.
The company’s ratings grew across five of its six U.S. networks during Q3, while advertising revenues also spiked 6.6% stateside. Leading the charge was HGTV, which reached its highest-rated Q3 ever in all key demographics, followed by the Travel Channel, which posted its fourth consecutive quarter of year-over-year ratings growth.
Elsewhere, Cooking Channel and DIY Network each delivered their best-rated quarters ever, while Great American Country saw its highest-rated third quarter since 2007.
“Scripps Networks Interactive delivered solid revenue growth at both our U.S. and international business segments, helping drive a double-digit improvement in net income,” said Kenneth Lowe (pictured), Scripps president, CEO and chair, in a statement. “Our successful strategy to focus on our differentiated lifestyle brands in the home, food and travel genres continues to pay off. Our popular networks are available on more platforms and reaching more new audiences than before, positioning the company for continued growth.”