The Wall Street Journal
By Tess Stynes
Shares rose 2% to $63.86 in recent premarket trading as the results beat analysts’ expectations.
The Knoxville, Tenn.-based company, like other cable-television-channel firms, has faced challenges from rivals such as Netflix and a growing number of “cord-cutters” as more people watch video online and on mobile devices.
Scripps, whose brands include HGTV, the DIY Network, Food Network, Cooking Channel and Travel Channel, has sought to expand abroad, including the launches of HGTV in Asia and Food Network in Brazil. Last month, the company completed its acquisition of a controlling stake in Polish TV operator TVN.
In the latest quarter, advertising revenue grew 1.4% to $496.9 million. Affiliate fees, which are paid by cable providers and other distributors, improved 8.5% to $203.4 million.
Overall, Scripps reported a profit of $193.7 million, or $1.49 a share, up from $153.8 million, or $1.07 a share, a year earlier. Excluding items such restructuring charges and acquisition-related impacts, per-share earnings rose to $1.47 from $1.14. Revenue increased 3.4% to $732.1 million.
Analysts polled by Thomson Reuters expected per-share profit of $1.26 and revenue of $729 million.
In the latest quarter, revenue growth included increases of 10% at HGTV, 11% at DIY Network and 8.9% at Cooking Channel. However, Travel Channel revenue fell 4.1% and Food Network revenue declined 4.2%.
The company also updated its 2015 guidance to reflect the TVN acquisition and now expects revenue growth of about 12%.