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Spinoff Cut Into Scripps Networks Q3 Earnings

Oct 29, 2008  •  Post A Comment

Scripps Networks Interactive said third-quarter earnings were slightly lower because of costs associated with splitting off from newspaper company E.W. Scripps.
Scripps, which runs cable channels HGTV, Food Network, DIY, Fine Living and Great American Country as well as a number of Web properties, said Wednesday that net income was $57.3 million, or 35 cents a share, compared with $57.9 million, or 35 cents a share, a year ago. Charges related to the split reduced net income by $9.2 million, or 6 cents a share, the company said.
Revenue increased 9% to $375 million.
“Even in a challenging economic environment, Scripps Networks Interactive delivered a solid third quarter,” said Ken Lowe, chairman, president and CEO. “The momentum we’ve created at our national lifestyle networks sustained our continued growth and it appears likely that it will carry us across the finish line for the full year, fulfilling the expectations we set 12 months ago.”
Scripps said profits for its lifestyle media segment rose 5.1% to $144 million. Ad revenues were up 5.4% to $236 million and affiliate fee revenues were up 15.6% to $69.9 million. Programming, marketing and other expenses rose 8% to $129 million, while employee costs were up 22% to $44.4 million.
Operating revenues at HGTV were up 5.1% to $143 million, while Food Network registered a 5.1% increase to $113 million.
Revenue at Fine Living rose 24% to $12.9 million.
Great American Country’s revenue fell to $5.9 million from $6.1 million.
Digital revenue grew 7.4% to $19.1 million.
Scripps Networks said it expects its lifestyle media segment will ring up revenue increases in mid single digits for the fourth quarter. Expenses are forecast to be up mid to high single digits as “the company continues to invest in its interactive content businesses and expand internationally.”

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