Scripps Networks Reports Lower Q1 Earnings

Ad Revenues up 11%
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Scripps Network Interactive reported lower earnings as a revenue increase was canceled out by higher expenses and an adverse tax charge.

First-quarter net income was $108 million, or $0.72 per share, compared with $115 million, or $0.73 per diluted share, in the first quarter 2012.

The 2013 earnings include a $7.8 million tax adjustment that reduced earnings by 5 cents a share.

Revenues were up 11% to $594 million.

“Scripps Networks Interactive delivered strong first quarter results demonstrating the strength of our lifestyle brands as valuable advertising platforms worldwide,” CEO Ken Lowe said in a statement.  “We’ve demonstrated our commitment to investing in our brands by developing compelling content that engages millions of media consumers every day across a full range of media platforms and geographies. This has established Scripps Networks Interactive as a clear leader in influencing consumer purchasing decisions in the home, food and travel categories. In the process, we’ve created sustained, long-term financial returns and value for our shareholders.”

Scripps Networks said that profit for its Lifestyle Media segment was up 6.6% to $282.1 million. Revenues were up 9.9% to $581 million. The revenue increase was driven by a 10% increase in advertising revenue and an 8.5% increase in affiliate fee revenue. The revenue growth was offset by higher programming and employee expenses.

Revenues for Food Network were up 4.8% to $208.3 million. Other Scripps networks showed bigger increases.

HGTV revenues were up 10.9% to $206 million; Travel Channel was up 115.1% to $76.7 million; DIY Network was up 15.4% to $31.9 million; Cooking Channel was up 32.7% to $26.3 million and GAC was up 28.2% to $22.6 million.

Revenue for Scripps Networks’ digital business edged up 0.9% to $22.6 million.