Scripps Networks Interactive posts 4Q profit as HGTV, Food Network lift revenue

Scripps Networks Interactive posts 4Q profit

CINCINNATI — Scripps Networks Interactive Inc. on Wednesday reported a fourth-quarter profit, reversing a loss a year ago as higher strong performance at cable channels HGTV and Food Network lifted its revenue.

Excluding a $243.7 million write-down and other one-time items in the 2008 quarter, however, Scripps’ profit fell, and its shares were down $1.70, or 3.9 percent, to $42.06 in afternoon trading.

The company said the Travel Channel, in which it bought a controlling interest from cable operator Cox Communications Inc. in December, contributed about $11 million to revenue. And it said the advertising slump is abating.

Food Network was the company’s runaway performer in the quarter. Scripps said the Jan. 3 episode of “Iron Chef America” that pit White House chef Cristeta Comerford and Bobby Flay against Mario Batali and Emeril Lagasse drew a record 7.6 million viewers.

In the quarter, Scripps earned $94.4 million, or 57 cents per share, compared with a loss of $153.5 million, or 94 cents per share, a year earlier.

Excluding one-time items, Scripps earned 52 cents per share. A year earlier, on the same basis, it earned 55 cents per share. In that period, the company wrote down the value of its investment in comparison shopping Web site Shopzilla.

Revenue rose by 6 percent to $429.7 million from $405.3 million.

Scripps’ fourth-quarter profit was in line with what analysts were expecting on average, but its revenue exceeded the forecast of $412.1 million from analysts polled by Thomson Reuters.

Scripps said its advertising revenue rose 6.8 percent to $281 million at its cable channels and Web sites, collectively called the Lifestyle Media group.

This group’s affiliate fees, which cable, satellite TV and phone companies pay Scripps for the right to carry its cable channels, rose by 16 percent to $81.3 million.

Total revenue at Lifestyle Media was up 12 percent to $380 million — including Travel Channel — and profit came to $163 million, down from $175 million in the prior year.

For the year, Scripps earned $299.3 million, or $1.81 per share, compared with $23.6 million, or 14 cents per share in 2008. Revenue was $1.54 billion, down from $1.55 billion.