Scripps Networks Serves Up 13% Ad Growth, Cooking Channel

Ken Lowe

Scripps Networks continued its healthy ad sales growth in the second quarter, while not ceding any distribution as it flipped its Fine Living Network into the Cooking Channel. The switchover Memorial Day weekend had Scripps' second food channel debut in about 57 million homes, the same amount Fine Living had. 

Scripps has said there would be some expenses involved with persuading operators to execute the change. CEO Ken Lowe said Scripps launched Cooking with only a "modest investment," although the company invested in programming.

Company ad sales were up 13%, not counting the Travel Channel, which Scripps now controls. The company has a new deal with chef Anthony Bourdain, keeping his 5-year-old "No Reservations" on the network for multiple years.

Overall, the company segment with Food Network, HGTV and its three other networks earned $475 million. Profit was $106 million. Both figures include the Travel Channel, where Scripps owns 65%.

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Scripps said on its second-quarter earnings call that a strong scatter market buoyed its upfront, and it sold a little over 50% of inventory, more than a year ago.

At Travel Channel, which Discovery Communications' sales team handled a year ago, Scripps said it attracted 30 new advertisers and landed a volume jump of close to 60% in the upfront. The network has also drastically decreased the amount of time occupied by direct-response advertisers.

Operating revenue -- which includes affiliate fees -- was up 6% at HGTV, but soared 35% at the Food Network. Scripps owns about 70% of the Food Network and would be interested in acquiring the balance from the Tribune Co.

Even as Scripps touts its success in building online businesses affiliated with its TV brands -- notably Food Network -- digital dollars were up just 3% to $21 million.

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