Scripps rides Food Network, HGTV to Q3 profit
Michelle Clancy | 11-11-2013
Scripps Networks Interactive's third-quarter earnings for 2013 showed a year-over-year bump in profit to $129 million, based on $617 million in revenue. This is compared with $118 million in the third quarter 2012.
"Scripps Networks Interactive delivered another strong quarter of growth during the third quarter, driven by the tremendous popularity of our lifestyle television networks," said Kenneth W Lowe, chairman, president and CEO. "We've created a valuable portfolio of lifestyle networks — as well as industry-leading websites and apps — that attract a highly engaged and upscale audience of food, home and travel enthusiasts."
Consolidated revenues for the quarter increased 9% from the prior-year period. Results for the three-month period ended 30 September reflect advertising revenue of $410 million, up 8.7%, and affiliate fee revenue of $191 million, up 9% year-over-year.
Equity in earnings of affiliates increased 35% to $15.2 million, due to increased contributions from our investments in HGTV Canada and Food Network Canada, and improved performance from HGTV and Food Network magazines.
Despite the positive news, expenses for the quarter increased 13% from the prior-year period to $355 million. The increase was driven by higher programme amortisation expense reflecting the company's investments to drive viewership at all of its lifestyle television networks. Also contributing to the expense growth were increased investments in international and digital growth initiatives, the company said.