The parent company of Home & Garden Television, Food Network, Fine Living and Do It Yourself expects their ad revenue to increase 30% in the second half of the year, officials told investors Wednesday.
The E.W. Scripps Co. projected the gain at its four cable networks due to “the expected increase in the strength of the national television advertising market and the targeted nature of [the] lifestyle networks.”
Scripps also said net revenue from affiliate fees will be up 40% for its cable networks in the second half of the year. “The increase in affiliate-fee revenue is a result of increased distribution for DIY and Fine Living and higher rates paid for HGTV and Food,” the company said in a press release.
The company added that programming expenses for HGTV and Food will be up about 20%, and increased spending on consumer marketing will result in a 40% increase in other cash expenses for those two networks.
For the full year, losses from developing programming services are expected to reduce profits for the cable-network unit anywhere from $33 million-$35 million. “Developing programming services include DIY, Fine Living and the development of content for video-on-demand and broadband services,” Scripps said.