Scripps Networks Affiliate Fees Outpace Revs, HGTV Fuels Co.

Scripps Networks Interactive -- home of Food Networks and HGTV -- witnessed advertising revenues slowing in the fourth quarter of 2014.

Advertising revenue inched up 0.7% to $454 million -- this versus its full year 2014, when advertising revenues were 5.7% higher to $1.8 billion.

But affiliate fees grew at a faster pace during the period -- a growth of 6.1% to $202 million. For 2014 as a whole, Scripps affiliate fees grew 5.4% to $799 million.

Overall, company-wide revenues gained 2.3% to $660.2 million during the fourth quarter with net income up nearly 18% to $178.0 million.

Media analysts suggest these results are disappointing. Midday trading had its stock price down 2% to $72.40.

HGTV remains the biggest revenue-generating brand at Scripps -- gaining 4.4% in the fourth quarter to $231.1 million, while Food Network slipped 1.1% to $219.7 million. Farther down the list is Travel Channel, losing 2.9% to $75.7 million. DIY Network improved 7% to $36.8 million; Cooking Channel grew 9.8% to $31.8 million; and Great American Country lost 2.6% to $7.5 million.

Scripps says its digital businesses were 4.2% higher to $37.8 million.



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