Scripps Networks Interactive, the owner of HGTV, Food Network and Travel Channel said a tougher market for TV advertising and ratings declines resulted in a mild increase in revenue at its TV networks in the fourth quarter, even as the company notched a 21% increase in net income for the period.
Scripps said fourth-quarter net income attributable to the company came to$131.8 million, or $0.96 per share, compared with $108.5 million ,or $0.73 per share in the previous quarter. Fourth-quarter results included a six-cent charge related to restructuring of operations, while the year-earlier period included a 17-cent-per-share write-down of goodwill. Excluding one-time items, adjusted net income would have come to $1.01 per share.
Revenues increased 2.3% to $669 million. The company said ad revenue rose 0.7% to $454 million, while affiliate fee revenue rose 6.1% to $202 million.
Among the company’s media operations devoted to lifestyle topics, revenues rose 1.7%, with ad revenue up 0.3% and affiliate fees up 6.1%. Scripps cited ” softness in the advertising market and audience delivery at some of our networks.”
Operating revenues fell at Food Network, Travel Channel and Great American Country during the fourth quarter, Scripps said, while increasing nearly 10% at Cooking Channel.