Scripps Networks 4Q net income falls 65 percent

HGTV owner Scripps Networks says 4Q net income falls 65 percent on special charges

Associated Press

KNOXVILLE, Tenn. (AP) -- Scripps Networks Interactive Inc., which owns the cable channels HGTV, Food Network and Travel Channel, said Friday that its fourth-quarter net income dropped 65 percent, hurt by one-time charges.

Separately, Scripps Networks said late Thursday that it increased its share buyback program by $1 billion and increased its quarterly dividend 20 cents per share from 15 cents per share.

Shares of Knoxville, Tenn.-based Scripps Networks rose $1.87, or 2.4 percent, to $79.31 in afternoon trading.

The company said its net income fell to $108.5 million, or 73 cents per share, in three months ending Dec. 31. That compares with net income of $305.8 million, or $2.02 per share, in the same quarter a year before.

The latest quarter's results were hurt by one-time charges, including a $24.7 million write-down for Travel Channel's international business that trimmed its earnings per share by 17 cents, which would have brought its adjusted earnings to 90 cents per share. Analysts expected 97 cents per share on that basis, according to FactSet.

Last year's results were also helped by a $123 million tax benefit it didn't receive this year.

Revenue rose 8 percent to $654.4 million from $604.7 million. Analysts expected $655.6 million.

For 2014, the company expects revenue to increase between 6 percent and 8 percent from 2013's $2.53 billion. That would mean revenue between $2.68 billion to $2.73 billion. Analysts expected revenue of $2.72 billion.

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