Food Network and Travel Channel parent Scripps Networks Interactive saw profits jump last quarter, in part on favorable tax adjustments, as ad sales rose 5% and affiliate fees grew 18%.
Costs were up 14% on planned growth at home and abroad, and higher programming expenses.
Net income shot up 93% to $344 million. Total revenue rose 9.2% to $605 million. But the numbers fell shy of Wall Street expectations, knocking the stock, which tends to be a media favorite. It was off 5% at $59 in early trading.
In a conference call Thursday, CEO Kenneth Lowe reminded investors that the company’s had 18 years of growth, which continued last quarter and into this year. Scripps’ segment profit hit $1 billion for the first time for full-year 2012.
Food Network revenue rose 5.2% for the three months ended in December to $214 million. HGTV was up 5.1% at $200 million and Travel Channel grew sales by 5.9% to $71 million.
DIY Network revenue rose 12.9% to $30.4 million and Cooking Channel jumped 38% to $25 million. GAC rose 16% to $7.8 million.