Scripps Cooks Up Profit Increase

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Scripps Network Interactive said Monday its profits rose in the second quarter thanks to strong growth of both advertising and affiliate revenue.

The gains came despite increased costs as the company absorbed and reprogrammed the Travel Channel and rebranded its Fine Living network to become the Cooking Channel.

Second-quarter net income rose to $106 million, or 63 cents per share, from $79.5 million, or 48 cents per share, a year ago.

Revenue increased to $516 million, an increase of 32% from a year ago. Excluding Travel Channel, acquired in December, consolidated revenue increased 16% to $454 million.

Total revenue from the company's Lifestyle Media business segment was $475 million, up 36%. Excluding Travel Channel, Lifestyle Media total revenue was $413 million, up 18%.

Affiliate fee revenue grew 73% to $139 million. Advertising revenue was $331 million, up 27%. Excluding Travel Channel, affiliate revenue increased 42% and advertising revenue was up 13%.

Total expenses increased 34% to $238 million.

Programming expenses increased 32% to $103 million. Programming expenses excluding Travel Channel were up about 15%. The company said the relatively large increase was caused in part by accelerated amortization of Fine Living Network programming related to the Cooking Channel rebranding.

Read more at B&C here.

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