One of the major cable TV channel groups reported a spike in second-quarter profits. The Wall Street Journal reports that Scripps Networks Interactive Inc., the owner of HGTV, Food Network, Travel Channel, Great American Country, DIY Network and other cable channels, posted a 26% increase in second-quarter earnings on higher ad revenue and fees paid by cable providers.
“The Knoxville, Tenn.-based company, like other cable-television-channel firms, has faced challenges from rivals such as Netflix and a growing number of ‘cord-cutters’ as more people watch video online and on mobile devices,” WSJ notes.
Scripps has been working on expanding its overseas footprint, launching HGTV in Asia and Food Network in Brazil and recently acquiring a controlling stake in Polish TV operator TVN.
“In the latest quarter, advertising revenue grew 1.4% to $496.9 million. Affiliate fees, which are paid by cable providers and other distributors, improved 8.5% to $203.4 million,” WSJ reports. “Overall, Scripps reported a profit of $193.7 million, or $1.49 a share, up from $153.8 million, or $1.07 a share, a year earlier. Excluding items such restructuring charges and acquisition-related impacts, per-share earnings rose to $1.47 from $1.14. Revenue increased 3.4% to $732.1 million.”