Scripps Networks Interactive, the parent company of the Food Network, HGTV and the Travel Channel, reported its third quarter revenues were up 9 percent over the prior year, but the company also saw its expenses shoot up 13 percent, to $355 million, because of higher programming costs.
Scripps reported consolidated revenues of $617 million, up 9 percent over third quarter 2012, and advertising revenue topped $410 million, up 8.7 percent over the prior year. Affiliate revenue was also up 9 percent year-over-year to $191 million.
Kenneth Lowe, chairman, president and CEO, touted the company's portfolio of networks as well as its websites and mobile apps for engaging the audience and increasing growth during the quarter.
However, like many programmers, content costs are increasing, particularly as companies attempt to increase viewership by looking to international markets. Scripps channels like the Food Network and the Travel Channel particularly lend themselves to international audiences. Scripps recently announced its intent to expand the Food Network to Asia as well as Latin America.
In September, Scripps announced that John Lansing, who ran HGTV, Food Network, DIY Network, Cooking Channel and Great American Country, would retire. CTAM just announced that Lansing would replace Char Beales as the CEO of the marketing association.
For more:
- see this WSJ article (sub. req.)
- see this Variety article
- see this press release
Special Report: Cable in the third quarter 2013
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