Scripps slowed by falling ad-growth
Scripps Networks Interactive suffered a four per cent slide in its share price after failing to meet Wall Street expectations. Earnings and other key metrics were up, but slower ad-revenue growth affected the stock, as did guidance that expenses would rise faster than earlier guidance.
The company said that for the full year 2013, it expected revenue to rise 7- 9 per cent, while costs of services would go up 7-9 per cent. It also said selling, general and administrative expenses are expected to increase 7-9 per cent.
Food Network was up 5.2 per cent to $215 million; HGTV, up 5.1 per cent to $200 million; Travel Channel, up 5.9 per cent to $71.1 million; DIY Network, up 13 percent to $30.4 million; and Cooking Channel, up 38 per cent to $24.7 million. ”Our solid fourth-quarter and full-year operating results demonstrate the popularity and superior marketing power of our lifestyle television networks and related interactive businesses,” chairman and CEO Ken Lowe said in a statement. “Since the launch of HGTV in 1994, our lifestyle media businesses have generated 18 consecutive years of growth, creating tremendous value for our shareholders, delivering uncommon value to our advertisers and distributors and engaging media consumers at the highest levels. Underpinning the company’s success is our commitment to remain focused on lifestyle content categories that touch and inspire the everyday lives of media consumers.”
“At Travel Channel, we rolled into our fifth consecutive month of year-over-year audience gains, and February is off to a great start as well. It registered a high single-digit audience increases across all day parts and demos, and I’m happy to report that the good news continued right through the month of January with strong double-digit year-over-year growth in our prime time audience.”
“Our International business continues to evolve and grow. It hasn’t been a year yet, since we acquired Travel Channel International but yet, we worked with the team in London to create a brand-new identity and on-air look and feel,” said Lowe.