Scripps Networks Interactive, Inc. (NYSE: SNI) today reported operating results for the fourth quarter 2013.
Consolidated revenues for the quarter increased 8.2 percent to $654 million from the prior-year period. Results for the three-month period ended December 31 reflect strong advertising revenue of $450 million, up 8.8 percent, and affiliate fee revenue of $190 million, up 9.7 percent year over year. A decrease in other revenue, due to a reduction in international licensing fees partially offset the company’s total revenue growth.
Costs of services and selling, general and administrative expenses for the quarter increased 13 percent from the prior-year period to $381 million. The increase was driven primarily by higher programming amortization and marketing expenses to drive viewership at all of the company’s lifestyle television networks.
Total segment profit increased 2.8 percent to $273 million. (See note 2 for a definition of segment profit.)Fourth quarter net income attributable to Scripps Networks Interactive was $109 million or $0.73 per diluted share, including a $0.17 per share write-down related to the company’s Travel Channel International business. Fourth quarter 2012 net income was $306 million, or $2.02, which was increased by net adjustments of $1.11 per diluted share. (See note 1.) Full-year Results Consolidated operating revenue in 2013 was $2.5 billion, up 9.7 percent from the prior year. Year-over-year advertising revenue was up 9.8 percent, to $1.7 billion, and affiliate fee revenue was up 10 percent, to $758 million. Segment profit increased to $1.1 billion, up 5.9 percent from the prior year. Full-year 2013 consolidated net income attributable to Scripps Networks Interactive was $505 million, or $3.40 per diluted share, including the write-down noted in the fourth quarter. Full-year 2012 net income was $681 million, or $4.44 per diluted share, which included the fourth quarter net adjustments of $1.11 per diluted share. (See note 1.) “Our strong fourth-quarter and full-year operating results validate our success in attracting an engaged, upscale audience with our unique lifestyle content,” said Kenneth W. Lowe, chairman, president and chief executive officer of Scripps Networks Interactive. “We create long-term value for our shareholders by building iconic lifestyle brands, a fact that’s borne out in the company’s long and successful track record.”
|Three months ended||Twelve months ended|
|December 31,||December 31,|
Segment operating revenues:
|Corporate and other||26,007||19,813||31.3||%||80,542||50,824||58.5||%|
|Total operating revenues||$||654,395||$||604,665||8.2||%||$||2,530,809||$||2,307,182||9.7||%|
|Segment profit (loss):|
|Corporate and other||(29,090||)||(21,577||)||34.8||%||(121,269||)||(94,684||)||28.1||%|
|Total segment profit||$||273,269||$||265,891||2.8||%||$||1,102,460||$||1,040,873||5.9||%|
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