Hallmark Channel Tunes Into 15% Ad Hikes

Crown Media Holdings, the home of the Hallmark Channel and Hallmark Movie Channel, had double-digit advertising growth in the second quarter of 2012 from the previous year's period.

Advertising revenue climbed 15% to $66 million in the second quarter, due to overall ratings growth at its networks. The Hallmark Movie Channel grew 40% to $11 million.

Crown Media also said subscriber fee revenue gained 10% to $20 million. Overall revenue grew 14% to $87 million. Net income dropped to $13 million from $21.7 million, due to difficult comparisons of a year ago. In 2011, net income for preferred shareholders was $9.7 million. Taking that comparison out -- when looking at net income to common shareholders -- those numbers rose a bit in the current period to $13.5 million from $12.1 million.

The company said it made revenue gains in its daytime programming block on the Hallmark Channel, which is anchored by a two-hour daily show: "Home and Family." Crown Media says CPMs almost doubled (80% to 100% improvement) above its "off-network daytime fare."

The company said another new daytime show "Marie," starring Marie Osmond, brought on new advertisers KitchenAid, Electrolux, Visa and General Motors.

Crown Media says cash flow grew substantially. Adjusted EBITDA improved 40% to $35 million for the quarter compared to the same period last year, due to a 14% increase in total revenues for the quarter.

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