Crown Revs Rise 10%, Spurred By Rate Hikes

Crown Media Holdings -- the parent company of Hallmark Channel and Hallmark Movies & Mysteries -- posted a 10% improvement in advertising revenues in the second three months of the year.

Advertising revenues grew to $74.9 million from $67.6 million in the second quarter of 2013 -- mostly as a result of rate increases on both networks. Subscriber revenue grew slower -- rising 2% to $21 million from $20.6 million. Overall revenues for the period were up 9% to $89.5 million.

Marketing expenses more than double during the period -- growing $2.6 million to $3.6 million -- in part to publicize its third new original series “Signed, Sealed, Delivered.” The company says overall programming costs grew 16% to $36.5 million -- in large part due to costs of that series.

Net income dipped slightly during the period, to $15.9 million from $16.5 million. But cash flow - earnings before interest, taxes, depreciation and amortization went in the other direction up to $38.7 million from $37.5 million.

As opposed to most other cable TV networks -- and some broadcast networks -- Crown Media Holdings said it grew upfront volume for the 2014-2015 season by a mid-single digit percentage for Hallmark Channel and double-digit percentage on Hallmark Movies & Mysteries, according to a report in Broadcasting & Cable.

Midday trading of Crown Media Holdings stock was down 0.6% to $3.36.

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