Scripps Networks Interactive, Inc. (NYSE: SNI) today reported operating results for the third quarter 2013.
“Scripps Networks Interactive delivered another strong quarter of growth during the third quarter, driven by the tremendous popularity of our lifestyle television networks,” said Kenneth W. Lowe, chairman, president and chief executive officer. “We’ve created a valuable portfolio of lifestyle networks — as well as industry-leading websites and apps — that attract a highly engaged and upscale audience of food, home and travel enthusiasts.”
Consolidated revenues for the quarter increased 9.0 percent to $617 million from the prior-year period. Results for the three-month period ended Sept. 30 reflect advertising revenue of $410 million, up 8.7 percent, and affiliate fee revenue of $191 million, up 9.0 percent year over year.
Expenses for the quarter increased 13 percent from the prior-year period to $355 million. The increase was driven by higher program amortization expense reflecting the company’s investments to drive viewership at all of its lifestyle television networks. Also contributing to the expense growth were increased investments in international and digital growth initiatives.Total segment profit increased 4.4 percent to $262 million. (See reconciliation of non-GAAP financial measures for a definition of segment profit.) Equity in earnings of affiliates increased 35 percent to $15.2 million, due to increased contributions from our investments in HGTV Canada and Food Network Canada, and improved performance from HGTV and Food Network magazines. Third quarter net income attributable to Scripps Networks Interactive was $129 million, or $0.87 per diluted share, compared with $118 million, or $0.78 per diluted share, in the third quarter 2012.
|(in thousands)||Three months ended||Nine months ended|
|September 30,||September 30,|
|Segment operating revenues:|
|Corporate and other||23,184||14,269||62.5||%||54,535||31,011||75.9||%|
|Total operating revenues||$||616,901||$||566,186||9.0||%||$||1,876,414||$||1,702,517||10.2||%|
|Segment profit (loss):|
|Corporate and other||(29,304||)||(21,967||)||33.4||%||(92,179||)||(73,107||)||26.1||%|
|Total segment profit||$||262,036||$||251,066||4.4||%||$||829,191||$||774,982||7.0||%|