Scripps Networks Fourth-Quarter Earnings Drop
The company behind such lifestyle channels as HGTV and Food Network records a $57.9 million goodwill write-down and says U.S. ad revenue rose 9.4 percent in the latest period.
Scripps Networks Interactive, the company behind such lifestyle channels as HGTV and Food Network, on Tuesday reported lower fourth-quarter earnings that fell below Wall Street expectations.
The company posted earnings of $52.1 million, or 40 cents per share, compared with $164.7 million, or $1.27 per share, in the year-ago period. The latest period's figure was affected by a $57.9 million non-cash goodwill write-down for international assets acquired in 2012 and 2013, as well as foreign currency exchange losses primarily due to the stronger dollar.
Adjusted quarterly earnings decreased to $133.7 million, or $1.02 per share. Operating income declined 17.2 percent.
Quarterly revenue rose 4.3 percent to $888.7 million as advertising revenue jumped 7.5 percent, including a 9.4 percent gain in the U.S., while distribution revenue declined 2.1 percent. Ratings grew overall for the company's portfolio of six U.S. networks.
Said president, chairman and CEO Kenneth Lowe: "2016 was an extraordinary year for Scripps Networks Interactive. We achieved record levels of revenue and significantly improved our earnings. We increased ratings and engagement with audiences across our linear and digital platforms and expanded our international reach to new markets."
He added: "This standout performance is a direct result of our relentless focus on operational execution and the deliberate investment we’ve made in programming, international businesses and in Scripps Lifestyle Studios."