Scripps Networks Beats In Q3

Scripps Networks Interactive, Inc. (SNI - Analyst Report) reported better-than-expected third-quarter 2009 financial results. Quarterly consolidated revenue of $364.5 million was flat relative to the prior-year quarter and was also in line with the Zacks Consensus Estimate. On a GAAP basis, quarterly net income from continuing operation was $64.6 million, or 39 cents per share, compared to a net income of $58.2 million, or 35 cents per share, in the year-ago quarter. Third quarter EPS of 39 cents was better than the Zacks Consensus Estimate of 37 cents.

Quarterly operating income was $122.7 million, up 4.8% year-over-year. This was mainly attributable to a 4.5% year-over-year decline in cost of sales and expenses. In the reported quarter, total segment profit (before depreciation and amortization) was $144.3 million, up 7.9% year-over-year. During the same quarter, the company generated $157.2 million of cash from continuing operations, compared to $216.3 million in the year-ago quarter. Quarterly free cash flow was $130.1 million, compared to $179.2 million in the prior-year quarter. At the end of the third quarter 2009, Scripps had more than $217.2 million of cash and marketable securities and no outstanding debt on its balance sheet.

Lifestyle Media Segment

Quarterly total revenue of $325.5 million was an improvement of 4.3% year-over-year. Out of this: advertising revenue was $236.6 million, up 0.5% year-over-year; revenue affiliates fee was $81.1 million, up 16% year-over-year; and other revenue was $7.9 million, up 19.1% year-over-year. Quarterly total expense was $175.1 million, up 1.2% year-over-year. Out of this, programming expense was $79.8%, up 7% year-over-year and non-programming expense was $95.3 million, down 3.3% year-over-year. However, total segment profit was $150.5 million, up 8.3% year-over-year.

Brand wise, HGTV revenue was $152.5 million, up 6.4% year-over-year. Total subscriber base is now 98,800 (up 1.4% year-over-year). Food Network revenue was $118.6 million, up 5.1% year-over-year. Total subscriber base is now 99,300 (up 1.8% year-over-year). DIY Network revenue was $17.7 million, up 10.5% year-over-year. Total subscriber base is now 52,100 (up 7.9% year-over-year). Fine Living Network (FLN) revenue was $11.2 million, down 13.1% year-over-year. Total subscriber base is now 55,700 (up 7.5% year-over-year). Great American Country (GAC) revenue was $6.4 million, up 9.5% year-over-year. Total subscriber base is now 57,200 (up 5.9% year-over-year). SN Digital revenue was $17.5 million, down 8.4% year-over-year.

Interactive Services

Quarterly total revenue of $39 million was down 25.2% year-over-year. Operating expenses were $32.6 million, down 20% year-over-year. However, segment profit was $6.4 million, down 44.4% year-over-year.

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