Outdoor Channel Ad Sales Soar, Carriage Fees Dip

Advertising revenue drives growth despite small drop in carriage fees.

Small basic-cable-network operator Outdoor Channel Holdings reported a swing to profit in the second quarter, buoyed by skyrocketing ad revenue.

Net income at the Temecula, Calif.-based company amounted to $271,000, or one cent per share, compared with a $1.1 million loss (four cents) in the same period a year ago.

Revenue climbed 14.4% to $13 million for the quarter ended June 30, led by a 28% hike in ad revenue to $8.5 million.

“The positive momentum we witnessed in recent quarters has continued throughout the second quarter and, moving forward, we remain hopeful that we can continue those trends,” Outdoor Channel president and CEO Roger L. Werner said in a statement. “In particular, we are pleased with the continued growth of our advertising revenues, despite a challenging economic environment.”

Revenue from carriage fees actually declined 4.6% to $4.55 million. The company attributed the drop to deals with the National Cable Television Cooperative, Charter Communications and Comcast.