• by Wayne Friedman , July 25, 2008

Second-quarter financial results at the new Scripps Networks Interactive showed some positive results--mostly because of its cable networks. Troubling numbers still exist at its TV stations, where net profit dropped 22.2% to $18.3 million, while revenue was off 4.8% to 80.5 million.

The company blamed generally weak local and national advertising sales, particularly in the automotive and retail categories. Local advertising was down 7% to $50.4 million. National advertising was off 7.6% to $23.8 million.

The better news came from political advertising, which pulled in $1.6 million during the period versus $400,000 from second-quarter 2007. Even then, political advertising revenue was weaker than expected, because of the lack of primary campaign spending in Florida and Michigan.

Year-to-date, political advertising revenue is at $4.7 million against $700,000. Political advertising revenue during the quarter was $1.6 million compared to $400,000 during the same period in 2007.

Total broadcast revenue--including political advertising--is expected to be up 15% to 17% for the year, with political advertising expected to be between $40 million and $44 million for the full year.

Other positive news came from Scripps' digital businesses. The company's shopping services, Shopzilla and uSwitch, combined to deliver $66.9 million for a 13% gain. Net profit almost doubled to $15.1 million from $6.8 million during the same period a year earlier.

Scripps' cable network division--Scripps Networks, a part of Scripps Networks Interactive--showed strong results, increasing 11% to $271 million with affiliate fee revenue up 19% to $69.7 million. Net profit was $180 million, 9.8% higher than a year ago.

Scripps' cable networks break down this way: HGTV's revenue was 13% improved to $172 million. Food Network revenue also climbed 13% to $136 million. Revenue at DIY Network was 28% higher to $19.3 million. Fine Living grew 17% to $14.7 million. And Great American Country slipped $300,000 in revenue to $6.8 million.

Scripps Networks Interactive spun off from E.W. Scripps Co., which now consists mostly of its newspaper operations. Results there witnessed earnings dropping 47% to $51.2 million, with revenue rising 3.8% to $664.1 million.

Looking at its newspaper segment specifically, revenues were down 13% to $144 million versus the same period the year before. Newspaper profit was almost cut in half to $16.3 million, versus $30.1 million last year.