Shares are down 2.6% in pre-market trading following the 3Q earnings report from the owner of lifestyle channels including HGTV and the Food Network. The company said it had nearly $130M in net income, down 4.5% vs last year’s 3Q, on revenues of $503.7M, up 7.9%. Analysts expected to see $509.7M. Earnings at 65 cents a share matched the Street’s expectation — but included several one-time gains and losses. Factoring those out, the company says its continuing operations delivered 66 cents. Scripps says that its decision to produce new shows at all its networks contributed to a 25% increase in programming costs and a 33% increase in marketing and promotion expenses. Those outweighed an 8.6% gain in ad revenues, to $344M, and 6.1% improvement in affiliate fees, to $148M. As for revenues at the major channels: Food Network was +12% to $180M, HGTV was +4.1% to $181M, Travel Channel was +0.4% to $62.6M, DIY Network was +3.7% to $23.7M, Cooking Channel was +36% to $16.6M, and Great American Country was -21% to $6.1M. “Our strategy to stay focused on these attractive content categories has resulted in consistent growth for the company and the creation of significant value for our shareholders,” says CEO Kenneth Lowe.
Scripps Networks Hit In 3Q By High Costs For New Shows And Marketing
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