Scripps Networks Q1 Profit Tops View, But Revenues Miss

(RTTNews) - Lifestyle media company Scripps Networks Interactive, Inc. (SNI) reported Thursday a profit for the first quarter that increased 19 percent from last year, reflecting revenue growth at its lifestyle media business. Earnings per share topped analysts' expectations by five cents, while quarterly revenues missed their estimates by a whisker.

"Scripps Networks Interactive once again delivered strong results demonstrating the strength of our lifestyle brands as valuable advertising platforms," Chairman, President and CEO Kenneth Lowe said in a statement.

The Knoxville, Tennessee-based developer of lifestyle-oriented content for television and the Internet markets, reported net income of $128.30 million or $0.87 per share for the first quarter, up from $107.82 million or $0.72 per share in the prior-year quarter, which included unfavorable tax adjustments totaling $0.05 per share.

On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $0.82 per share for the quarter. Analysts' estimate typically excludes one-time items.

Consolidated operating revenue for the quarter increased 8.3 percent to $643.75 million from $594.39 million in the same quarter last year, but missed eighteen Wall Street analysts' consensus estimate of $645.05 million by a whisker.

The company noted that results for the quarter reflects a 10.0 percent advertising revenue growth to $434 million, and affiliate fee revenue growth of 7.2 percent to $201 million from the year-ago quarter.

Lifestyle media business revenue increased 7.6 percent from last year to $623 million, driven by advertising and affiliate fee revenue growth.

On a brand basis, Food Network revenue grew 5.5 percent, HGTV revenue improved 10.6 percent, Travel Channel revenue advanced 4.0 percent and DIY Network revenue increased 10.6 percent from last year.

Cooking Channel revenues grew 8.1 percent, Great American Country revenues rose 10.9 percent, and Digital Businesses revenue improved 5.9 percent from a year ago.

Costs of services and selling, general and administrative expenses for the quarter increased 7.5 percent to $373 million, driven primarily by higher programming amortization at lifestyle television networks.

We continue to balance investment in our brands by developing compelling content that engages millions of media consumers across a range of platforms and geographies. This has established Scripps Networks Interactive as the leader in influencing consumer purchasing decisions in the home, food and travel categories," Lowe added.

In Thursday's regular trading session, SNI is currently trading at $76.98, up $2.51 or 3.37% on a volume of 0.40 million shares.