Below are my key takeaways from the Scripps Q2 2016 Earnings Call on Aug 9:
Opening statement from Ken Lowe, CEO, was “Scripps Interactive again delivered another quarter of strong operating performance…”
Total operating rev +22% YoY to $893MM, consolidated advertising rev +29%, ad revenue for US networks +9% and crossed $500MM in the quarter for first time ever. Consolidated adjusted segment profit up 14%. Closed a record upfront.
HGTV was the number one network, in terms of revenue, at $283MM. Food Network was second with $241MM, followed by Travel Channel at $86MM, DIY at $47MM and Cooking Channel at $37. All channels grew revenue in the quarter, except for DIY, which fell 2%.
Its networks are distributed in 175 countries and territories and broadcast in 29 languages reaching 300 cumulative subscribers. International revenue grew thanks to inclusion of TVN Poland, a leading multi-platform media business.
Travel Channel had three consecutive quarter of YoY growth, saw primetime growth of +11% among adults 25-54, with ratings growing in 6 out of 7 nights of the week. Time spent viewing increased by 10 minutes and its Dive Into Summer programming was a huge success, driving double digit Sunday prime ratings increases over the quarter. On social media, they have over 2MM followers on Twitter, nearly 2MM likes on Facebook and over 1MM followers on Instagram.
Great American Country grew ratings more than 50%, having it’s best quarter in 9 years.
In International, TVN Poland saw revenue up mid single digits and total commercial audience share up 3%. HDTV now in the Middle East and Africa.
Olympic counter programming has gone as planned and it’s too early to tell if the games are having an impact.
|Financials (In millions)||Q2 2016||Q2 2015||% Diff|
|– Ad Rev||$647||$503||28.6%|
|– Distribution Rev||$223||$215||3.8%|
|– Other Rev||$23||$14||62.0%|
|Rev by Network (In millions)||Q2 2016||Q2 2015||% Diff|
|Great American Country||$8||$8||1.5%|
List of Key Properties:
- DIY Network
- Food Network
- Great American Country
- Travel Channel
- Cooking Channel
- Fine Living Network
- Continue global rollouts of key networks, especially HGTV in Europe and Food Network and Travel Channel coming to Israel
- Will see programming spend stay consistent, with no sports to worry about cost increases.
- Not as worried about cord cutting because its audience is generally 35+, and it’s generally younger demo that is pushing this trend
- Not thinking about content or network consolidation or adding to the mix, since their 6 networks bring high quality, family-friendly programming with strong ratings and favorable audiences to the negotiating table, when compared to other companies
Links to Company Website:
Please comment below if there are data points from Scripps Networks you’d like me to include in their next Earnings Call Summary.