Lifestyle media company Scripps Networks Interactive Inc. (SNI) reported Thursday that profit for the third quarter surged from last year, reflecting double-digit growth in advertising revenues and affiliate fee revenue at the company's Lifestyle Media business segment as well as 7.2% growth in interactive services revenues.
Both adjusted earnings per share and quarterly revenue topped analysts' expectations. The company now expects revenues for its Lifestyle Media affiliate for the full-year 2010 at the top-end of it prior guidance.
"Scripps Networks Interactive had an outstanding third quarter, benefiting from robust affiliate revenue growth and continued strong advertising demand, particularly for our targeted lifestyle television networks. All of our networks and our online shopping related businesses contributed to double-digit revenue and earnings growth," Chairman, President and CEO Kenneth Lowe said in a statement.
The Cincinnati, Ohio-based company reported net income of $101.69 million or $0.61 per share for the third quarter, up from $65.32 million or $0.39 per share in the prior-year quarter.
Excluding a favorable tax adjustment and the effect of transition costs related to the Travel Channel, adjusted net income for the latest quarter was $98.8 million or $0.59 per share.
On average, 15 analysts polled by Thomson Reuters expected earnings of $0.53 per share for the third quarter. Analysts' estimate typically excludes one-time items.
Consolidated revenue for the quarter surged 39.6% to $508.69 million from $364.46 million in the same quarter last year, and topped fifteen Wall Street analysts' consensus estimate of $489.09 million.
Excluding Travel Channel, in which the company acquired a 65% controlling interest on December 15, 2009, consolidated revenue increased 22% year-over-year to $445 million.
Scripps Networks operates through two segments, Lifestyle Media and Interactive Services.
Total revenue at the Lifestyle Media business segment increased 42.1% from last year to $462.49 million. Affiliate fee revenue rose 71.4% to $138.96 million, and advertising revenue grew 33.7% to $316.42 million from a year ago. Excluding Travel Channel, Lifestyle Media revenue grew 23%.
Among brands, HGTV operating revenue increased 13.8%, Food Network's revenue climbed 35.3%, Travel Channel revenues increased 14% and DIY network revenue was up 29.1%.
Interactive Services segment revenue grew 7.2% to $41.80 million from a year ago. The segment provides online comparison shopping service, Shopzilla, and its related online comparison shopping brands. The segment growth reflected strong growth in its European properties and the repositioning of the business in the U. S.
Looking ahead to fiscal 2010, Scripps Networks now expects revenue for its Lifestyle Media affiliate at about $550 million, the top-end of its prior guidance range of $540 million to $550 million. The revised outlook includes about $100 million attributable to Travel Channel.
Scripps Networks' peer, Silver Spring, Maryland-based Discovery Communications, Inc. (DISCA, DISCB,DISCK) reported Tuesday significant rise in profit for the third quarter, helped primarily by higher revenues from U.S. and International networks. Total quarterly revenues grew 11% to $926 million from a year ago.
SNI closed Wednesday's regular trading session at $50.50, down $0.26 on a volume of 0.71 million shares, higher than the three-month average volume of 0.68 million shares. In the past 52-week period, the stock has been trading in a range of $36.87 to $51.59.
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