×
You will be redirected back to your article in seconds

Scripps’ First-Quarter Net Income Dips Despite Ad-Revenue Increase

Analyst sees scatter advertising healthy for owner of lifestyle cablers

Scripps Networks Interactive said first-quarter net income dipped 6.2% as the costs of investing in and marketing programming offset increases in advertising and affiliate revenue.

The owner of Food Network, HGTV, DIY and other cablers, said expenses in the quarter rose 17%, to $347 million. The rises were attributed to the company investing in efforts to drive viewership, employee costs, as well as “investments in planned domestic and international growth initiatives.” That served to mask the company’s revenue growth in the quarter. Revenue rose 11% to $594 million, up from $535 million in the year-earlier period.

Scripps said ad revenue rose 11% in the quarter to $395 million, and affiliate fee revenue rose to $187 million, a rise of 11% year over year.

In all, Scripps said net income came to $107.8 million, or 72 cents a share, down from $114.9 million, or 73 cents a share, a year earlier.

In a research note Thursday, Nomura Securities said the company’s TV nets enjoyed “healthy” scatter advertising rates, or prices for ads that are purchased much closer to air date, which “than offset some choppiness at Food Network, while HGTV and Travel continue to contribute nicely. Food Network revenue growth in 1Q was +5% Y/Y, while HGTV was up +11%, Travel up +15%, and Cooking Channel up +33%.”

Scripps acquired the Asian Food Channel, based in Singapore, during the quarter. The price was not disclosed.

More TV

  • Mj Rodriguez, Nico Santos to Announce

    Mj Rodriguez, Nico Santos to Announce GLAAD Media Award Nominations

    Mj Rodriguez and Nico Santos are set to announce the nominees for the 30th annual GLAAD Media Awards. The “Pose” star and “Crazy Rich Asians” funny man will make the announcement during a live-stream from the AT&T Hello Lounge at the Sundance Film Festival on Friday, Jan. 25. “The images and stories recognized by the [...]

  • Naomi Watts

    Naomi Watts to Star in Jason Blum-Produced Quibi Series 'Wolves and Villagers' (EXCLUSIVE)

    Naomi Watts has been cast in the lead role in the upcoming Quibi series “Wolves and Villagers,” Variety has learned exclusively. The exact plot of the short-form series is being kept under wraps, but Quibi co-founder Jeffrey Katzenberg has previously described the show as “Fatal Attraction 2.0.” Jason Blum is executive producing the series, with [...]

  • HBO's 'Breslin And Hamill' Documentary Drops

    HBO's 'Breslin And Hamill' Documentary Drops Trailer

    “Revolutionary,” “superstars,” “the voice of true New Yorkers” — that’s how Spike Lee and other influential figures describe journalists Jimmy Breslin and Pete Hamill in the trailer released for HBO’s “Breslin and Hamill: Deadline Artists” documentary. The film, which premieres Jan. 28 at 8 p.m. ET/PT, follows the two newspaper columnists whose dedication and wit [...]

  • Riverdale Chapter Twenty-Six

    TV News Roundup: 'Riverdale' Sets 'Heathers' Musical Episode

    In Thursday’s roundup, “Riverdale” is set to tackle “Heathers: The Musical,” and Freeform has announced its second annual summit. DATES  The musical episode of the CW’s “Riverdale,” featuring nine songs, will air Wednesday, March 20 at 8 p.m. ET/PT. On the show, Riverdale High School takes on “Heathers: The Musical,” with queen bees Cheryl Blossom (Madelaine Petsch), [...]

  • The Bone Collector

    NBC Orders 'Bone Collector' Drama Pilot 'Lincoln'

    NBC has ordered the drama pilot “Lincoln,” formerly known as “The Bone Collector.” Based on the internationally bestselling book series, “Lincoln” follows legendary forensic criminologist Lincoln Rhyme, who was seriously injured during his hunt for the diabolic serial killer known as the Bone Collector. Called back into action when the killer re-emerges, Lincoln forms a [...]

  • Netflix - Apple TV

    Netflix Turns in Record Q4 Subscriber Gain, Price Increase Weighs on U.S. Forecast

    Netflix is beating Wall Street expectations for international subscriber growth — but its recently announced price increase in the U.S. may have put a damper on its momentum in the States. For the fourth quarter of 2018, Netflix reported 1.53 million paid net adds in the U.S. and 7.31 million internationally, to end the year [...]

More From Our Brands

Access exclusive content