TV, Online Ad Sales Lift Scripps Q1 Earnings Above Estimates

Net earnings were US$84.1 million, or 51 cents a share, for the January-March period compared with $68.5 million, or 42 cents a share, a year ago.

Revenue increased 6.8 percent to $642 million from $601.4 million during the same period in 2007.

Surpassing Expectations

Analysts polled by Thomson Financial were looking for earnings of 43 cents a share for the quarter on revenue of $625 million.

Scripps Networks, which includes HGTV, Food Network, DIY Network, Fine Living Network and Great American Country, accounted for nearly half of the consolidated revenue.

At the company's newspapers and television stations, performance was affected by industrywide weakness in local advertising sales. Revenue at Scripps newspapers was down 8.3 percent to $156 million, while newspaper online revenue was flat at $10 million.

Newspapers Sagging

Newspaper segment profit was $27.6 million, compared with $29.3 million last year. That segment's profit included a $4.4 million, one-time gain from the sale of real estate owned by the Denver Newspaper Agency. Its newspapers include the Rocky Mountain News in Denver, The Commercial-Appeal in Memphis and the Corpus Christi Caller-Times in Texas.

"Strong growth at our Scripps Networks and Interactive Media divisions drove improved consolidated results for the company during the first quarter," Kenneth W. Lowe, president and chief executive officer, said in a statement.

"Solid audience trends at HGTV and Food Network, combined with healthy pricing in the scatter advertising market, resulted in double digit revenue and segment profit growth for Scripps Networks. We also saw strong growth at our Interactive Media segment, thanks primarily to Shopzilla's improving ability to efficiently monetize its growing levels of user traffic."

Stock Boost

Scripps' shares rose 2 cents to $43.81 in morning trading. The stock has traded between $35.61 and $47.60 over the last year.

Other newspaper publishers, including Gannett, Lee Enterprises and McClatchy attributed lower first-quarter results to tumbling advertising revenue.

The company, which owns daily and community newspapers in 15 markets, 10 broadcast TV stations and other media properties, plans to split into two companies by June 30. One company will include cable networks and interactive properties, the other will include newspapers and broadcast television stations.