Scripps Networks (SNI) Q2 Earnings Surpass, Revenues Miss
Zacks Investment Research | Aug 07, 2017 09:38PM ET
Scripps Networks Interactive Inc. (NASDAQ:SNI) , which is scheduled to be acquired by Discovery Communications (NASDAQ:DISCA) early next year, reported mixed results in the second quarter of 2017. The company’s earnings (excluding special items) of $1.79 per share surpassed the Zacks Consensus Estimate of $1.62. Also, the bottom line improved 26.06% on a year-over-year basis.
The company’s second-quarter operating revenues of $925 million fell short of the Zacks Consensus Estimate of $936 million. Revenues were up 3.6% year over year on strong TV advertising and distribution revenues in the U.S. Advertising revenues came in at $663.0 million, up 2.5% year over year, while Distribution revenues rose 7.3% to $239.7 million. On the other hand, Other revenues declined 1.5% year over year.
Second-quarter consolidated segment profits (on an adjusted basis) totaled $412.8 million, down 1.6% year over year. Quarterly operating income (on a reported basis) rose marginally to $374.08 million.
At the end of the second quarter of 2017, Scripps Networks had $131.6 million in cash & cash equivalents and $3.0 billion of debt on its balance sheet, compared with $122.9 million and $3.2 billion respectively, at the end of 2016.
Segmental Performance
U.S. Networks
Quarterly revenues came in at $779.0 million, up 3.6% year over year. Advertising revenues inched up 2.2% year over year to $552.7 million on continued strength in pricing in the U.S. advertising market for the company’s lifestyle offerings. Distribution revenues also increased 8.1% year over year to $211.9 million, driven by a rise in negotiated annual rate and revenues from new over-the-top distribution platforms.
Segmental (adjusted) profits came in at $398.7 million, down 1.5% year over year, driven by increase in expenses.
International Networks
Quarterly total revenue of $153.3 million was up 4.2% year over year. Segmental adjusted profits totaled $38.8 millioncompared with $37.4 million in the prior-year quarter.
Conversely, loss (adjusted) from the Corporate and Other segment widened to $24.7 million from $22.9 million a year ago.
Scripps Networks Interactive, Inc Price, Consensus and EPS Surprise
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