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Crown Media Reports Q2 Loss, but Sub, Affiliate Fee Growth

Aug 9, 2005  •  Post A Comment

Crown Media Holdings, the parent company of Hallmark Channel, swung to a wider second-quarter loss Tuesday, even as subscriber and affiliate-fee growth led to a surge in revenue.

The Greenwood Village, Colo.-based company reported a loss of $56.3 million, compared with red ink of $40.6 million a year ago. Revenue rose 50 percent to $45.7 million.

The wider loss was related to the company’s increased investment in programming for the channel as well as higher costs associated with its efforts to get more subscribers.

But the effort paid off in terms of higher ratings and a 13 percent rise in number of households passed to 68.5 million from a year-earlier figure of 60.6 million. In addition, the company saw its affiliate-fee revenue climb 41 percent in the quarter, as distributors’ free-carriage periods expired.