Scripps reports revenues for July

Thu, August 09, 2001 by Tim Stautberg

CINCINNATI - The E. W. Scripps Company's pro forma consolidated revenues for July were $112 million, down 1.9 percent from the same month a year ago on a pro forma basis. Revenues for Scripps Networks, the company's fastest growing operating division, were up 15 percent to $26.8 million. Scripps Networks includes national television network brands Home & Garden Television, Food Network and Do It Yourself (DIY).Subscriber growth for HGTV and Food has continued at a healthy pace. HGTV now reaches 71.1 million homes, up 6.9 million, or 11 percent, from a year ago, and up 4 million subscribers through the first seven months of 2001. Food Network can now be seen in 62 million homes, up 11.5 million, or 23 percent, from July 2000, and up 7.6 million year-to-date.Pro forma newspaper revenues for the month were $58.3 million, down 2 percent from the same month a year ago. Newspaper advertising revenues were down 4.8 percent. Classified advertising revenue for July was down 8.9 percent because of continued weakness in the help wanted category. Local advertising revenue declined 5.2 percent. Preprint and other advertising revenue decreased slightly and national advertising was up 20 percent.The company receives 50 percent of the operating income from the Denver Newspaper Agency, which began operations on Jan. 22, 2001. The agency handles business and production operations for the Rocky Mountain News and The Denver Post, owned by MediaNews Group. The company's share of operating income is reported as "other" newspaper revenue. The company continues to include its editorial costs associated with the Rocky Mountain News in operating expenses. The company's financial statements do not include advertising, circulation and other revenue produced by the Rocky Mountain News, nor any non-editorial costs. To make the company's year-over-year newspaper results comparable, revenues are being reported on a pro forma basis, including the Rocky Mountain News as if the recently implemented joint operating agreement had started on Jan. 1, 2000.At the company's broadcast television stations, July revenues declined 13 percent to $19.7 million due to a general weakness in broadcast television advertising and the absence of political advertising this year compared to last.The E.W. Scripps Company is a diverse media concern with interests in newspaper publishing, broadcast television, cable television networks and interactive media. Scripps operates 21 daily newspapers, 10 broadcast TV stations and three national television networks, with plans to launch a fourth.Scripps national television network brands include Home & Garden Television, Food Network, Do It Yourself and Fine Living, due to launch in early 2002.The company also operates Scripps Howard News Service, United Media, the worldwide licensing and syndication home of PEANUTS and DILBERT, and 31 Web sites, including hgtv.com, foodtv.com, diynet.com and comics.com.

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