Scripps Networks Q2 Results Top Estimates

(RTTNews) - Lifestyle media company Scripps Networks Interactive, Inc. (SNI) reported Thursday a profit for the second quarter that increased from last year, reflecting strong double-digit growth at its lifestyle media business.

Both earnings per share and quarterly revenues topped analysts' expectations. The company also raised its revenue growth guidance for the full-year 2013, citing the ongoing strength in the advertising market.

"The growth story at Scripps Networks Interactive continued during the second quarter, driven by the tremendous popularity of our lifestyle television networks with media consumers, advertisers and content distributors," 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 $159.73 million or $1.08 per share for the second quarter, up from $142.36 million or $0.93 per share in the prior-year quarter.

On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $1.05 per share for the quarter. Analysts' estimate typically excludes one-time items.

Consolidated operating revenue for the quarter increased 10.7 percent to $665.13 million from $600.99 million in the same quarter last year, and topped eighteen Wall Street analysts' consensus estimate of $656.28 million.

The company noted that results for the quarter reflects an 11 percent advertising revenue growth to $462 million, and affiliate fee revenue growth of 11 percent to $189 million from the year-ago quarter.

Expenses for the quarter increased 9.2 percent $345 million, driven by program amortization expenses as well as increased investments in international growth initiatives.

Total revenue at the lifestyle media business increased 9,5 percent from last year to $647 million, driven by advertising and affiliate fee revenue growth.

"We've succeeded in creating a valuable portfolio of networks — as well as industry-leading websites and apps — that attract a highly engaged audience of food, home and travel enthusiasts. Those distinctly unique attributes drive our company's consistently solid operating results," Lowe added.

Looking ahead to fiscal 2013, the company raised its revenue growth guidance to now be 9 to 10 percent from the previous range of 7 to 9 percent, citing the ongoing strength in the advertising market. This implies revenues between $2.52 billion and $2.54 billion, based on revenues of $2.31 billion reported for fiscal 2012. Street is currently looking for full-year 2013 revenues of $2.52 billion.

In Thursday's regular trading session, SNI is currently trading at $75.00, up $0.95 or 1.28% on a volume of 0.27 million shares.