Scripps Posts Slight Decline In Q3 U.S. Advertising

Scripps Networks Interactive, which has a deal to be acquired by Discovery Communications for $11.9 billion, posted a slight decline in U.S. advertising revenue in the third quarter.

U.S. advertising revenues slipped 0.6% to $474.8 million due to lower ad viewership, as well as “an inventory mix shift in the quarter.” But Scripps had a 4.7% climb in U.S. networks’ distribution revenues to $203.5 million.

International TV networks fared better -- a 13% gain in operating revenues and an increase in advertising revenues.

Overall, Scripps gained 3% in revenue to $825 million -- with global advertising up 2% to $567.4 million and distribution fees adding 5.1% to $233.1 million.

Scripps posted a 10.3% decline in net income to $163 million. The company says the decline was the result of merger-related expenses, higher marketing costs, an increase in cost of investments in programming, and lower foreign-currency transaction gains.

Scripps Networks Interactive stock closed up 0.3% on Wednesday to $83.52.



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