Scripps Networks Interactive Inc.'s (SNI) second-quarter profit rose 34%, beating analysts' expectations, on increased affiliate fees and better advertising revenue, thanks in part to December's acquisition of the Travel Channel.
The owner of HGTV and Food Network, as well as websites Shopzilla and uSwitch, saw total revenue at its lifestyle segment, which includes the cable channels, rise 36% as earnings jumped 38%. Affiliate fees surged 73% and advertising revenue jumped 27%, with the latter's growth stronger than seen at other cable-network owners.
Scripps has posted improved results in recent quarters as ad revenue has recovered from last year. Ratings for the Travel Channel have been rising in recent months and were up by a double-digit percentage in July, according to a research note from MKM Partners.
The company posted earnings of $106.2 million, or 63 cents a share, up from $79.5 million, or 48 cents a share, a year earlier. The latest quarter included 4 cents of gains. Revenue rose 32% to $516 million, with half the increase due to the Travel Channel.
Analysts polled by Thomson Reuters most recently forecast earnings of 57 cents on $509 million in revenue.
Operating margin was flat at 37.5%.
Shares closed Friday at $44.82 and didn't trade premarket. The stock has risen 32% the past year.
-By Matt Jarzemsky and Jodi Xu, Dow Jones Newswires; 212-416-2240; firstname.lastname@example.org