Scripps Posts $160 Million Second-Quarter Profit

CARLY HARRINGTON | The Knoxville News Sentinel

Knoxville-based Scripps Networks Interactive said Thursday its second-quarter profit increased 12 percent because of strong advertising and distribution revenues and a growing international business.

The media company, which operates HGTV, Food Network and The Travel Channel, reported net income of $160 million, or $1.08 per diluted share, compared to the $142 million, or 93 cents per diluted share, it earned during the same period a year ago.

Consolidated revenues for the three-month period ending June 30 increased 11 percent to $665 million.

Ken Lowe, the company’s chairman, president and CEO, attributed the positive results to the popularity of its lifestyle television networks in the U.S. and abroad as well as its websites, mobile platform, magazines and branded consumer products.

“It’s very clear we’ve created valuable lifestyle destinations that attract highly engaged audiences of food, home and travel enthusiasts. Those distinctively unique attributes really sets Scripps Networks apart from its peers,” Lowe told analysts during an earnings call.

The second quarter also benefited from a growing international business, Lowe said. In April, the company purchased the Asian Food Channel. It also is continuing to expand its global distribution of Food and Travel channels.

Scripps Networks has made international expansion a top strategic priority. It pointed to Eastern European as an attractive market as well as Central Eastern Europe, Asia and Latin America. The company’s television programming can be seen in 170 countries in seven continents.

Advertising revenue for the quarter increased 10 percent to $456 million and network affiliate fees increased 10 percent to $182 million.

Operating revenues for Great American Country saw the biggest second quarter jump, increasing 41 percent to $7 million up from nearly $5 million. Food Network saw smaller gains, with operating revenues increasing 3 percent to $24.5 million up from $218 million.

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