Scripps Networks Interactive Inc. (NYSE:SNI) today reported operating results for the first quarter 2014.
Consolidated revenues for the quarter increased 8.3 percent to $644 million from the prior-year period. Results for the three-month period ended March 31 reflect strong advertising revenue of $434 million, up 10 percent, and affiliate fee revenue of $201 million, up 7.2 percent year-over-year.
Costs of services and selling, general and administrative expenses for the quarter increased 7.5 percent from the prior-year period to $373 million. The increase was driven primarily by higher programming amortization at the company’s lifestyle television networks.
Total segment profit increased 9.4 percent to $271 million. (See reconciliation of non-GAAP financial measures for a definition of segment profit.)
First quarter net income attributable to Scripps Networks Interactive was $128 million, or $0.87 per diluted share. First quarter 2013 net income was $108 million, or $0.72, which included unfavorable tax adjustments totaling $0.05 per diluted share.
“Scripps Networks Interactive once again delivered strong results demonstrating the strength of our lifestyle brands as valuable advertising platforms,” said Kenneth W. Lowe, chairman, president and chief executive officer of Scripps Networks Interactive. “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.”
Lifestyle media revenues in the first quarter of 2014 increased 7.6 percent to $623 million driven by advertising and affiliate fee revenue growth. Total advertising revenue for the lifestyle media segment grew 8.9 percent to $426 million. Affiliate fee revenue grew 6.3 percent to $190 million due to higher rates and the benefit of our online video distribution agreements.
Lifestyle media segment profit increased 11 percent to $311 million reflecting the strong revenue growth and lower than expected program amortization.