Strong Ad Sales Drive Scripps Q15/03/2012 2:39 PM Eastern
Scripps Networks Interactive grew advertising revenue by 10% in the first quarter, driven by strong performance at its flagship cable channels HGTV and Food Network.
Consolidated revenue rose 11% to $535 million and total segment profit was up 5.3% to $239 million. Cable networks advertising sales improved by 10% to $356 million while affiliate fee revenue rose 16% to $168 million.
While revenue at Food Network rose 14% to $199 million and increased 8.4% to $186 million at HGTV in the period, Scripps other networks also fared well. Travel Channel reported a 7.4% revenue increase to $66.6 million and DIY Network (18%), Cooking Channel (30%) all reported strong gains. At Great American Country, revenue declined 23% to $5 million in the period.
"The tremendous popularity of our lifestyle television networks, and the strong relationships we've forged with media consumers, advertisers and content distributors, drove our excellent first-quarter operating results," Scripps Networks chairman and CEO Ken Lowe said in a statement. "The competitive advantage we've established for ourselves in the home, food and travel content categories underpins the company's continued growth and the value we're creating for our shareholders."
Scripps stock was up nearly 7% ($3.40 each) to $54.14 per share in afternoon trading.