• by David Goetzl  @dgoetzl, May 8, 2008

Despite any potential issues regarding an economic slowdown, Hallmark Channel posted solid ad revenue growth in the first quarter, giving the network hope that it will be able to top its $96 million upfront of a year ago.

Network parent Crown Media reported a 23% jump in ad dollars (to $56.4) million in the first quarter, driven partly by what it said was strong scatter pricing and some growth at Hallmark Channel's smaller companion Hallmark Movie Channel.

"On the heels of such a strong scatter market, we are highly confident about our prospects for the upfront season," said Crown Media CEO Henry Schleiff. Under Schleiff, Hallmark Channel has looked to diversify programming, notably with the acquisition of syndicated series "Cheers" that comes in October.

Overall, Crown saw first-quarter revenue up 32% to $70.6 million (ad dollars accounted for some 80%. Its net loss narrowed from $40.2 million a year ago to $14.7 million this time.

Sub fee intake also increased significantly as Hallmark Channel added 8 million homes--which gives it a presence in some 84 million homes, en route to what it expects will be the magic 90 million "full distribution" arena in the not-too-distant future.