Crown Media Earnings Grow 3% in Q2 - Multichannel

Crown Media Earnings Grow 3% in Q2

Ad Revenues Climb 10% Behind Rate Increases on Both Nets
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Signed, Sealed, Delivered.jpg

Crown Media Holdings, which runs the Hallmark cable channels, reported higher second quarter earnigs.

Net income rose 3% to $16.5 million, or 5 cents per share, compared to $16 million, or 4 cents per share, in the second quarter of 2014.

Revenue rose 9% overall to $97.4 million, with ad revenue ahead 10%.

“During second quarter, we continued to showcase our commitment to quality, original scripted series by successfully launching our third series, Signed, Sealed, Delivered, fortifying our brand and establishing a strong foundation for the second half of the year,” Bill Abbott, president and CEO of Crown Media Family Networks, said in a statement. “Moreover, we reported double-digit operating cash flow growth propelled by rising advertising revenue in recent quarters. Solid pricing combined with our second season of Cedar Cove and a robust slate of original movies should bolster earnings through the remainder of the year.”

Subscriber fee revenue increased 2% to $21 million in the second quarter of 2013 due to contractual rate increases, the company said.

Advertising revenue increased 10% to $75.8 million from $68.7 million. The company said it got rate increases on both Hallmark Channel and Hallmark Movie Channel, but those gains were offset by lower demographic ratings at Hallmark Movie Channel.

Programming costs increased 16% due to the amortization of costs related to the original series Signed, Sealed, Delivered (pictured). Marketing expenses increased $2.6 million during quarter as the company promoted the Martha Williamson-penned series.

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