Scripps Networks Interactive reported lower earnings as a
revenue increase was canceled out by higher expenses and an adverse tax charge.
First-quarter net income was $108 million, or $0.72 per
share, compared with $115 million, or $0.73 per diluted share, in first quarter
2012. The 2013 earnings include a $7.8 million tax adjustment that reduced
earnings by 5 cents a share.
Revenues were up 11% to $594 million.
"Scripps Networks Interactive delivered strong first quarter
results demonstrating the strength of our lifestyle brands as valuable
advertising platforms worldwide," CEO Ken Lowe said in a statement. "We've demonstrated our commitment to
investing in our brands by developing compelling content that engages millions
of media consumers every day across a full range of media platforms and
geographies. This has established Scripps Networks Interactive as a clear
leader in influencing consumer purchasing decisions in the home, food and
travel categories. In the process, we've created sustained, long-term financial
returns and value for our shareholders."
Scripps Networks said that profit for its Lifestyle Media
segment was up 6.6% to $282.1 million. Revenues were up 9.9% to $581 million.
The revenue increase was driven by a 10% increase in advertising revenue and an
8.5% increase in affiliate fee revenue. The revenue growth was offset by higher
programming and employee expenses.
Revenues for Food Network were up 4.8% to $208.3 million.
Other Scripps networks showed bigger increases.
HGTV revenues were up 10.9% to $206 million; Travel Channel
was up 115.1% to $76.7 million; DIY Network was up 15.4% to $31.9 million; Cooking
Channel was up 32.7% to $26.3 million; and GAC was up 28.2% to $22.6
for Scripps Networks' digital business was up 0.9% to $22.6 million.