Scripps Networks Interactive Posts 11% Rev Hike
Scripps Networks Interactive posted first-quarter double-digit advertising growth for its networks -- which include HGTV and Food Network. But net income was slightly down.
Overall revenues grew 11% to $594 million, with advertising revenue 11% higher to $395 million and affiliate fee revenue adding on 11% to $187 million. Regarding its advertising performance, the company said the major reason was a strong ad marketplace.
But Scripps said because of changes in the tax law, its net income slipped some to $108 million from $115 million in the first quarter of 2012. Expenses were also up 17% from the prior-year period to $347 million.
Analyzing its "Lifestyle segment, where its cable networks resides," Scripps said segment profit increased 6.6% to $282 million, where there was a 10% revenue growth, offset by higher programming amortization expense and higher employee and other expenses.
Looking at recent April-to-April ratings comparisons for its two big networks, Food Network was down 17%, with average prime-time viewers to 1.06 million. HGTV, however, was up 10% to 1.24 million. In key 18-49 viewers, Food Network was down 24% to 460,000, while HGTV was up 3% to 443,000.
Total day ratings showed Food down 12% in total viewers to 596,000 and HGTV up 10% to 725,000.