Crown Media Holdings, which operates the Hallmark Channels,
reported lower first quarter net income because of interest and tax expenses.
Net income was $12.3 million, or 3 cents a share, down from
$64.1 million, or 13 cents a share, a year ago.
Without charges for interest and taxes, income from
operations rose 42% to $31.367 million.
Revenues rose 14% to $83.8 million and advertising revenue
jumped 15% to $64.9 million.
"We have completed a very productive first quarter of
2012 with positive financial results, exciting developments in programming,
sturdy ratings and strong distribution gains for Hallmark Movie Channel,"
Bill Abbott, president and CEO of Crown Media Family Networks, said in a
statement. "Positioning for the 2012/2013 upfront season is underway and
we have a strong story with our recent results and increased commitment to
The company said advertising revenues grew because of both
audience growth and rate increases. Advertising revenue from the Hallmark Movie
Channel increased $10.5 million from $7.3 million.
Subscriber fee revenue increased 12% to $19.8 million from
$17.7 million in the first quarter of 2011 due to contractual rate increases
and incremental carriage.
Programming expenses increased 6% to $34.1 million because
of costs from The Martha Stewart Show,
newly acquired titles and original movies. Marketing expenses rose 25% to
$500,000 from $400,000.