Q4 revenues rose 6% to $430 million for Scripps Networks Interactive (SNI), with the gain attributed to higher ad sales and affiliate fees for its marquee cable networks, HGTV and Food network.
That gain in Q4 came even before new affiliate fee rates kicked in January 1st. CEO Ken Lowe was gung-ho on that new rate structure, saying the company had achieved higher payments from MSOs based on audience growth at the cable nets.
Following the successful resolution of the recent standoff with Cablevision, CFO Joe NeCastro told analysts that SNI had achieved parity with other major cable networks with its new fee structure for HGTV and Food Network. “By and large, we’re very, very pleased with how those renewals came out,” he said, adding that SNI had surpassed its own objectives going into the renewal negotiations.
Q4 net income attributable to SNI was $94.4 million, or 57 cents per share, compared with a net loss of $154 million in Q4 2008. The net loss in the prior-year period included a write-down in the value of goodwill at the company’s Shopzilla comparison shopping subsidiary.