Scripps sees profits slip, makes Travel Channel write-down

Channel operator Scripps Networks Interactive saw profits drop year-on-year in Q4 after writing down the value of the company’s Travel Channel International business by US$24.7 million (€18 million). 

Announcing results for the three and 12 months ending December 31, Scripps also said that in Q4 it wrote-down the value of RealGravity – an online video platform and ad marketplace that it bought in 2012 – by US$19.7 million to reflect fair value.

Overall, the firm, which owns international channel brands including HGTV, DIY Network, Food Network, Cooking Channel and Travel Channel, said that fourth quarter net income fell 64.5% year-on-year to US$108.5 million.

However, consolidated revenues for the quarter increased 8.2% to US$654 million.

Scripps attributed this gain to strong ad revenues of US$450 million, up 8.8% year-on-year, and increased affiliate, which came in at US$190 million – up 9.7%.

For the full year, consolidated operating revenue was US$2.5 billion, up 9.7% from the prior year. Full-year 2013 consolidated net income attributable to Scripps Networks Interactive was US$505 million, down 25.9% year-on-year.

“Our strong fourth-quarter and full-year operating results validate our success in attracting an engaged, upscale audience with our unique lifestyle content. We create long-term value for our shareholders by building iconic lifestyle brands, a fact that’s borne out in the company’s long and successful track record,” said Scripps Networks Interactive chairman, president and CEO Kenneth W. Lowe.