Scripps Networks 2Q net income rises 12 percent

Scripps Networks 2nd-quarter profit up 12 percent on higher advertising and affiliate revenue

Associated Press

KNOXVILLE, Tenn. (AP) -- Scripps Networks Interactive Inc., the operator of pay-TV networks such as Food Network and HGTV, said Thursday its second-quarter net income rose 12 percent, helped by double-digit increases in both advertising and affiliate revenue.

Scripps earned $159.7 million, or $1.08 per share, up from $142.4 million, or 93 cents per share, in the same quarter of 2012.

Operating revenue rose 11 percent to $665.1 million from $601 million.

The results beat Wall Street predictions. Analysts, on average, expected a profit of $1.05 per share on $656.5 million in revenue, according to FactSet.

Kenneth Lowe, the company's chairman, president and CEO, credited Scripps' portfolio of networks, websites and apps with attracting food, travel and home enthusiasts.

Advertising revenue rose 11 percent to $462 million, while affiliate fee revenue increased 11 percent to $189 million.

Scripps said it now expects its 2013 revenue to increase between 9 percent and 10 percent from year-ago levels. The company previously predicted an increase of between 7 percent and 9 percent.

Based on the company's 2012 revenue of $2.31 billion, the new guidance implies 2013 revenue of between $2.51 billion and $2.54 billion. Analysts expect $2.52 billion.

In morning trading, Scripps Network shares added 54 cents to $74.59.

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