Cable Operators

BEST OF MULTICHANNEL.COM: NETWORK EARNINGS

5/09/2011 12:01 AM Eastern

Time Warner Profit Dips Despite TV Gains

NEW YORK — Despite higher revenues from its TV business, Time Warner
Inc.
posted lower first-quarter profits because of lower earnings at its
movie unit.

Net income totaled $653 million, or 59 cents a share, down 10 % from $725
million (62 cents). Revenue rose 6% to $6.7 billion, with advertising up 20%,
driven by a 31% increase at Turner Broadcasting, which along with CBS, televised
the NCAA Men’s Division I Basketball Tournament for the first time under
a 14-year, $10.8 billion deal.

Adjusted operating income at Time Warner’s networks unit, which includes
Turner and HBO, rose 2% to $1.17 billion from $1.14 billion as programming
costs escalated 37% due to the NCAA basketball tournament rights, as well
as higher costs for original and licensed programming. Revenues rose 18%,
to $3.496 billion from $2.958 billion. Advertising revenue rose 31%, thanks to
March Madness and higher sales of HBO programming.

The company said it repurchased 37 million shares for $1.3 billion this year.

— Jon Lafayette, Broadcasting & Cable

Ad Growth Lifts Scripps Networks’ Bottom Line

KNOXVILLE, TENN. Scripps Networks Interactive reported higher income as
advertising and affiliate revenue rose during the first quarter.

Net income was $101 million, or 59 cents a share, up from $72.5 million (43
cents). Revenue rose 14% to $536 million. Ad revenue was up 12% to $324
million and affiliate fee revenue was up 6.3% to $145 million.

Scripps’ Lifestyle Media unit, including the cable channels, reported that revenue
rose 11% to $474 million, with advertising revenue up 12% to $322 million
and affiliate revenue up $6% to $144 million. Profit for the segment was
up 31% to $245 million.

Scripps reported $15.5 million in transition costs related to the acquisition
and integration of Travel Channel and $11 million in marketing and legal costs
in connection with affiliate renewal negotiations for Food Network and HGTV.

 — Jon Lafayette, Broadcasting & Cable

News Corp. Profit Down Despite TV Gains

NEW YORK — Gains at News Corp.’s TV business were more than offset by
lower income at its filmed entertainment segment during the third quarter.

Net income was $639 million, or 24 cents a share, down from $839 million (32
cents) a year ago, including a $125 million charge to settle litigation, the company
said. Excluding nonrecurring items, earnings per share were down from 29
cents a share. Revenue dropped to $5.3 billion from $5.8 billion.

Cable networks were the company’s biggest generator of earnings, with profits
growing 25% to $735 million on a 13% gain in revenue.

Operating income for News Corp.’s domestic cable channels was up 22%. International
cable channels were up 34%.

At the domestic channels, affiliate revenue grew 10% and advertising revenue
rose 14%, led by pricing and ratings growth at FX.
Operating income at News Corp.’s television segment rose to $192 million.
Revenues were up 2%, thanks to the Super Bowl and a stronger advertising market.
There were also lower expenses thanks to the end of the serial 24 and lower
costs for American Idol.

Jon Lafayette, Broadcasting & Cable

Crown Sees Strong Ad Revenue in Q1

NEW YORK Crown Media Holdings, parent of Hallmark Channel, reported
mixed fi rst-quarter results last week, with advertising revenue up a healthy 9%
but affiliate fees up just 4% in the period, impacted by the lack of a distribution
deal with a major carrier.

Overall, Crown reported revenue of $73.6 million in the period, up 8% from the
prior year. Advertising revenue, at $55.7 million, was up 9% in the period and fueled
by a strong increase at the Hallmark Movie Channel, which recently began
selling ratings-based ads. That switched nearly doubled HMC’s ad take to $7.3
million from $3.7 million in the prior year.

Affiliate fees were up a modest 4% to $17.7 million from $17 million in the prior
year, the result of some rate increases and offset by some distribution losses.

— Mike Farrell