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Scripps Networks: Revenue Rose, Income Fell in 3Q15

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Nov. 10 2015, Published 8:25 a.m. ET

Scripps Networks’ price movement

Scripps Networks Interactive (SNI) has a market cap of $7.5 billion. Scripps Networks’ YTD (year-to-date) price movement was falling until October 2015. After the 3Q15 earnings report, SNI fell by 1.1% to close at $58.4 per share as of November 9, 2015. The price movement on a weekly, monthly, and YTD basis is -2.4%, 4.1%, and -21.6%, respectively.

Technically, the stock has broken the support of 20-day, 50-day, and 200-day moving averages throughout 2015. Currently, it’s trading at 1.6% above the 20-day moving average, 7.7% above the 50-day moving average, and -8.5% below the 200-day moving average.

The Guggenheim S&P Equal Weight Consumer Discretionary ETF (RCD) invests 1.3% of its holdings in Scripps Networks. The ETF tracks an equal-weighted index of large-cap US consumer discretionary stocks drawn from the S&P 500. The YTD price movement of the ETF is 3.9% as of November 6, 2015.

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Competitors and their market caps

The competitors of Scripps Networks (SNI) and their market caps are:

  • Liberty Interactive Group (QVCA) at $19.0 billion
  • Discovery Communications (DISCA) at $12.1 billion
  • Viacom (VIAB) at $19.1 billion
  • AMC Networks (AMCX) at $5.4 billion

Performance of Scripps Networks in 3Q15

The company reported net revenue of $776.1 million in 3Q15, a rise of 20.4% when compared to the net revenue of $644.4 million in 3Q14. Revenue from the HGTV, Food Network, DIY Network, Cooking Channel, and Digital Business brands rose by 6.3%, 1.1%, 11.4%, 17.5%, and 37.5%, respectively, in 3Q15 as compared to the revenue in 3Q14. Revenue from Advertising and Network Affiliate fees rose by 5.2% and 6.3%, respectively, in 3Q15 as compared to the revenue in 3Q14. The cost of service as a percentage of revenue rose by 6.2% in 3Q15 as compared to the same quarter last year.

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Net income fell to $163.3 million, and EPS (earnings per share) rose to $0.96 per share in 3Q15, as compared to net income of $170.3 million and EPS at $0.93 per share in 3Q14. Net revenue rose by 6.0% in 3Q15 on a quarterly basis. The current ratio fell to 3.31, and the debt-to-equity ratio rose to 2.76 in 3Q15 as compared to a current ratio of 10.48 and a debt-to-equity ratio of 2.41 in 2Q15.

Scripps Networks completed the acquisition of 52.7% interest in Poland’s premier multi-platform media company, TVN, from ITI and Canal+ Group for an all-cash consideration of 584 million euros.

The company declared a quarterly dividend of $0.23 per share on its common stock.

Key appointments

The company promoted some key persons in 3Q15:

  • Kathleen Finch, as Chief Programming, Content & Brand Officer
  • Burton Jablin, as Chief Operating Officer
  • Shannon Jamieson Driver, as Senior Vice President, Network Marketing & Creative Services.

About Scripps Networks

Scripps Networks Interactive develops content for lifestyle media platforms including television, digital, mobile, and publishing. Its portfolio of lifestyle brands includes HGTV, DIY Network, Food Network, Cooking Channel, Travel Channel, and Great American Country.

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