Scripps Networks Q3 Profit Beats View

(RTTNews) - Lifestyle media company Scripps Networks Interactive, Inc. (SNI) on Thursday reported a slight increase in profit for the third quarter from last year, reflecting higher advertising revenue and affiliate fees. Earnings per share topped analysts' expectations, while quarterly revenues missed their estimates.

The Knoxville, Tennessee-based developer of lifestyle-oriented content for television and the Internet markets, reported net income for the third quarter of $131.34 million or $0.93 per share, up from $129.00 million or $0.87 per share in the prior-year quarter.

On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $0.84 per share for the quarter. Analysts' estimate typically excludes one-time items.

Consolidated operating revenue for the quarter grew 5 percent to $644.42 million from $616.90 million in the same quarter last year, but missed analysts' consensus estimate of $651.41 million.

The company noted that results for the quarter reflects 5 percent increase in advertising revenue to $432 million, and 4 percent growth in affiliate fee revenue to $198 million.

Lifestyle media business revenue increased 4 percent from last year to $618.09 million, driven by advertising and affiliate fee revenue growth. The segment includes cable channels like Food Network and HGTV.

On a brand basis, Food Network revenue grew 5 percent, HGTV revenue rose 7 percent, Cooking Channel revenue advanced 7 percent and DIY Network revenue increased 9 percent from last year. Meanwhile, Travel Channel revenues declined 5 percent and Digital Businesses revenues decreased 11 percent.

Corporate and other revenues, which are primarily international operations, increased 9 percent to $27.11 million, reflecting expanded international distribution and the launch of the uLive digital business in the U.S. in June 2013.

Costs of services and selling, general and administrative expenses for the quarter increased 6 percent to $374 million, driven primarily by higher programming amortization. This was partially offset by declines in selling, general and administrative expenses.

SNI is currently trading at $76.53, up $1.94 or 2.6 percent on a volume of 117,497 shares.