Scripps Networks Interactive Sees 5% U.S. Ad Growth

Scripps Networks Interactive posted steady third-quarter advertising revenues helped by steady viewership at its cable networks.

U.S. advertising revenues were 5% higher to $447.8 million -- a bit better than expected, according to analysts. U.S. affiliate revenue grew 6.3% to $199.2 million.

In contrast to declining ratings at many other big cable networks, SNI’s Food Network and HGTV were up -- 2% and 8%, respectively, looking at total Nielsen measured viewers. HGTV was up 3% among 18-49 viewers, while Food was down 5% among those viewers.

SNI posted strong revenues thanks to its international TV business -- in particular from the inclusion of Poland’s TVN, now 100% owned by SNI. International revenues jump four times that of the third quarter 2014 go $118.7 million.

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U.S. networks' revenues rose 6.2% to $660.9 million. Overall, revenues grew 20% to $776.1 million. Net income dropped 4.1% to $163.3 million.

On Monday, SNI’s stock was 1.7% higher to $60.07 in mid-day trading.

Todd Juenger, senior media analyst for Bernstein Research, has concerns about 2016: “One wonders what advertising revenue growth looks like next year if HGTV audiences are, say, flat? We have [plus] 1% in our model, which would still be, in our view, significant share gain. But it would be a significant deceleration, and below our understanding of sell-side consensus. “

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