WASHINGTON: Scripps Networks Interactive Inc. achieved $2.4 billion in consolidated advertising revenues, topping $2 billion for the first time, as the Knoxville-based company experienced an increase of 17.2 percent last year. SNI released its 2016 fourth-quarter and full-year results on Tuesday. In a conference call with investors Tuesday, Scripps Networks chairman, president and CEO Kenneth Lowe said the results showed the company was following the right approach. “The record results we reported (Tuesday) underscore our strength and the value of our content,” he said. “I know we have the right strategic priorities and team to continue to increase shareholder value and returns. We expect 2017 to be another year of sustainable growth.”
U.S. advertising revenues rose 9.6 percent for 2016, driven by improved ratings for all six U.S. networks in total for the C-3 viewing window. Scripps Networks Interactive was the only U.S. media group to achieve this, according to the company. SNI achieved consolidated operating revenues of $3.4 billion, representing a 12.7 percent increase and a consolidated operating income of $1.1 billion, which was a 4 percent increase. Scripps’ consolidated adjusted segment profit was $1.4 billion, an increase of 10.1 percent over the previous year.
HGTV, DIY Network and Cooking Channel had their highest-rated and most watched year ever, with HGTV finishing the year ranked third among all cable networks for total adult viewers. Reaching new audiences on emerging digital platforms continues to be a strategic focus of the company, Lowe said. In 2016, revenues for the digital businesses increased 9.4 percent, driven by Scripps Lifestyle Studios’ focus on increasing social media and online engagement. In 2016, Scripps Lifestyle Studios delivered more than 5 billion total video views across various digital platforms. “As different platforms have come along, they have provided new ways for us to use our content and that has brought us new revenue opportunities,” Lowe said.
Lowe said the company has had impressive growth overseas. TVN, Scripps’ multi-platform media business in Poland grew across the entire portfolio and increased its ratings 3.5 percent with its key audience. In January, Scripps launched HGTV in Poland, which is the network’s first full launch in Europe and the largest HGTV international launch to date. For the fourth quarter, Scripps’ operating revenues were up 4.3 percent to $888.7 million and advertising revenues up 7.5 percent to $641.5 million. Operating income was down 17.2 percent to $227.8 million due to a previously announced non-cash accounting adjustment.
