Scripps Networks Q3 Profit Tops View, But Revenues Miss

(RTTNews) - Lifestyle media company Scripps Networks Interactive, Inc. (SNI) reported Thursday a profit for the third quarter that increased nine percent from last year, reflecting revenue growth at its lifestyle media business. Earnings per share topped analysts' expectations by three cents, while quarterly revenues missed their estimates by a whisker.

"Scripps Networks Interactive delivered another strong quarter of growth during the third quarter, driven by the tremendous popularity of our lifestyle television networks," Chairman, President and CEO Kenneth Lowe said in a statement.

The Knoxville, Tennessee-based developer of lifestyle-oriented content for television and the Internet markets, reported net income of $129 million or $0.87 per share for the third quarter, up from $118 million or $0.78 per share in the prior-year quarter.

On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $0.84 per share for the quarter. Analysts' estimate typically excludes one-time items.

Consolidated operating revenue for the quarter increased 9.0 percent to $617 million from $566.19 million in the same quarter last year, but missed seventeen Wall Street analysts' consensus estimate of $619.09 million by a whisker.

The company noted that results for the quarter reflects an 8.7 percent advertising revenue growth to $410 million, and affiliate fee revenue growth of 9.0 percent to $191 million from the year-ago quarter.

Expenses for the quarter increased 13 percent $355 million, driven by program amortization expenses as well as increased investments in international and digital growth initiatives.

Total revenue for the lifestyle media business increased 7.8 percent from last year to $595 million, driven by advertising and affiliate fee revenue growth.

"We've created a valuable portfolio of lifestyle networks — as well as industry-leading websites and apps — that attract a highly engaged and upscale audience of food, home and travel enthusiasts," Lowe added.

In Thursday's regular trading session, SNI is currently trading at $77.04, down $3.25 or 4.05% on a volume of 0.35 million shares.