Crown Media Q2 Revenues Up As Hallmark Channel Ad Sales Improve

The owner of the Hallmark Channel says that its original movies are still working — and advertisers like the network’s daytime programming plans which include a two-hour daily show Home And Family and Marie Osmond’s Marie. Crown generated net income of $13.5M, – 38% vs the period last year, on revenues of $86.7M, +13.9%. Much of the decline in earnings is due to interest and tax expenses, partly due to its debt restructuring. For common stockholders, earnings per share increased a penny to four cents. The company is thinly traded and not closely followed by analysts. Crown says that ad sales were up 15% in Q2 to $66.5M, which it attributes to the growth in its audience. Subscriber fees from pay TV providers were up 10% to $19.9M. Crown says that that advertiser CPMs for Home And Familywhich will feature former Entertainment Tonight host Mark Steines and TV personality Paige Davis — were as much as 100% better than what Hallmark had been collecting for its off-network daytime shows. It also says that Marie is attracting first-time advertisers including KitchenAir, Electrolux, Visa, and General Motors. “During second quarter, the casting developments for Hallmark Channel were significant,” says Crown Media Family Networks CEO Bill Abbott. Although Crown shares closed yesterday at a modest $1.73, the price is up nearly 43% in 2012, recovering somewhat from a steep decline in 2011.

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