Scripps posts double digit revenue growth for Q4

Of the networks in the company's lifestyle roster, Food Network, HGTV, Cooking Channel and DIY Network posted revenue gains, while Travel Channel and Great American Country posted losses.
February 9, 2012

Scripps Networks Interactive (SNI) posted a rise in profits for the quarter ending December 31, 2011, which the media company attributes to strong double-digit growth in its advertising revenue.

Net income rose 3.4% to US$135 million, while consolidated revenues rose by 10%, to $553 million from the prior year period. Ad revenue came in at $394 million, up 11%, while affiliate fee revenue stood at $147 million, a year-on-year increase of 5.7%.

As for each network in the SNI Lifestyle Media segment, Food Network, HGTV, Cooking Channel and DIY Network posted revenue gains for the fourth quarter, while Travel Channel and Great American Country posted losses.

Food Network’s revenues were $204 million, up 15% from the prior year period. HGTV reported $191 million in revenue, up 8.1%. DIY Network reported $26.9 million in revenue, an increase of 18% over last year’s fourth quarter, and Cooking Channel also notched up a double digit increase in revenue with $17.8 million, up 14%.

Travel Channel posted a small decrease in revenue, with its $67.2 million down 1.4% year-on-year. Great American Country posted $6.6 million in revenue, a decrease of 15%.

Meanwhile, revenue from the Lifestyle Media segment’s digital businesses, which include its network-branded web sites, was $30.4 million, up 4.1%.

Consolidated expenses for the quarter increased by 6.1% from the prior year period to $296 million – an increase that SNI attributes to higher programming amortization expenses and fees related to the company’s investment in the UKTV partnership.

“The high level of engagement our focused lifestyle networks have created with media consumers, and the value our television and interactive brands deliver to advertisers as preferred marketing platforms, is reflected in the company’s strong fourth-quarter operating results,” said Kenneth W. Lowe, chairman, president and chief executive officer of Scripps Networks Interactive. “Our consistent track record of double-digit revenue and segment profit growth continued during the three-month period, and contributed to a very good 2011.”

For its 2012 outlook, the company expects total revenue to increase between 8-10%, and programming expenses are expected to increase between 13-15%.

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