• by Wayne Friedman , March 3, 2011

Crown Media Holdings stock jumped in midday trading on strong net income gains during the fourth quarter.

Net income was $29.5 million versus nearly flat results a year ago, with $373,000 profit. Revenue also moved up strongly -- $90.7 million versus $77.6 million in the fourth quarter of 2009.

In midday trading, Crown Media's stock was up 4% to $2.53.

Crown Media Holdings key assets Hallmark Channel and the Hallmark Movie Channel benefited from strong holiday season advertising. Advertising revenue improved 13% to $68.2 million during the period from $60.6 million.

Subscriber revenue also went higher -- 34%, to $21.9 million, versus $16.4 million in the previous period. Also helping the balance sheet, Crown's cost of services decreased 6% to $38.1 million from $40.5 million during the same quarter of 2009. Cash flow also gained.

Adjusted earnings before interest, taxes, depreciation and amortization, moved up to $38.1 million from $25.4 million for the same period last year.

Key programming improvements came from the new-to-this-season "Martha Stewart Show," which gained big ratings during the holiday period among key women 25-54, by 80% versus the previous period.

"Our solid quarter of results, with strong holiday seasons on Hallmark Channel and Hallmark Movie Channel, and continued development of the Hallmark Channel Home programming block, fueled advertising revenue gains and increased subscriber license fees," said Bill Abbott, president/CEO of Crown Media.