Scripps Networks Interactive reported a sharp drop in profits as ad revenues fell ahead of its planned acquisition by Discovery Communications.
Net income fell 15% to $124 million, or 95 cents a share, from $146 million, or $1.12 a share.
Revenues rose 2.8% to $825.5 million.
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Scripps’ U.S. networks had income from operations before income taxes of $29.3 million, down 4.4%. The drop was driven by an increase in programming and marketing costs, offset by the growth in operating revenues.
Revenues rose 0.9% to $692.4 million. Distribution revenue was up 4.7% to $203.5 million. Domestic ad revenues were down 0.6% to $474.8 million.
The company reiterated its guidance for its 2017 full-year results.
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“At a time of rapid transformation in the media industry, we continue to execute on our strategic goals to strengthen the core business, expand our reach and monetize audiences. Our brands deliver the compelling content and programming that viewers love and trust, and with each passing quarter, we are building stronger community with consumers across a multitude of devices and platforms around the world,” said CEO Ken Lowe.
“Scripps Lifestyle Studios delivered another record-breaking quarter, further solidifying our digital businesses as an increasingly important growth driver for the company. With the launch of Genius Kitchen, our newest food-focused digital brand, which offers more than 150 hours of immersive content, Scripps Lifestyle Studios is well-positioned to deliver even more impactful digital assets to our audiences,” Lowe said.
