• by Newswire Report , July 14, 2003

Multimedia programming and publishing giant E. W. Scripps showed improved second quarter financial results, led by strong performance at its cable properties.

Net income for the three-month period ended June 30 was $64.7 million compared to $27.0 million for the same period a year ago. Net income, according to the company, should consider "unusual" investment write downs from 2002, so the net income from continuing operations increased about 9 percent during the second quarter of 2003. Still profits at Scripps Networks increased 70 percent during the second quarter to $55.9 million on a 28 percent revenue increase to $142 million for the three-month period. Scripps Networks includes the company's portfolio of cable and satellite television networks, Home & Garden Television, Food Network, DIY -- Do It Yourself Network and Fine Living.

Scripps Networks second quarter segment profit was reduced by about $9.8 million as the company "continued to invest in programming and increased distribution of DIY, Fine Living and video-on-demand services." DIY and Fine Living, what the company calls developing networks, cost about a $9.8 million decrease in the profit picture. However, Scripps pointed to a total household increase for the properties 19 million and 17 million U.S. households, respectively. Home & Garden Television and Food Network -- the company's flagship national networks -- can be viewed in about 81 million and 79 million U.S. television households, respectively.

Segment profits at the company's broadcast television stations were down 1.2 percent to $24.5 million in the second quarter. Broadcast television revenues increased 4.2 percent during the period to $78.9 million. Broadcast television profits were held back by increased syndicated programming and employee pension costs.

"Exceptionally strong financial performance at HGTV and Food continued to drive the company's growth during the second quarter," said Kenneth W. Lowe, president and chief executive officer for Scripps. "Our developing networks also are showing progress. DIY and Fine Living achieved important distribution gains during the quarter and both are on track to be in 20 million U.S. television households by the end of the year."

At the company's newspapers, second quarter segment profits declined 4.4 percent to $67.5 million on a 1.5 percent increase in revenues. Newspaper profits declined due to continued weakness in local retail and help wanted advertising and higher newsprint prices. Newspaper division segment profits for the quarter include $4.7 million from the joint newspaper operations in Denver compared to $2.9 million in the same period a year ago. Higher employee benefit costs and lower results from the company's other newspaper joint operating agreements also reduced segment profits.

"At the company's newspapers, the slow ascent of the broader economy from its current trough affected second quarter results," Lowe said. "In a number of our markets, large department stores trimmed their newspaper advertising budgets, which had a negative effect on the local retail category. Also, help wanted advertising continues to be down across the board as employers wait to see what the economy is going to do before they begin hiring again."