Channel operator Scripps Networks Interactive saw profits drop year-on-year in Q4 after writing down the value of the company’s Travel Channel International business by US$24.7 million.
Announcing results for the three and 12 months ending December 31, Scripps also said that in Q4 it also wrote-down the value of RealGravity – an online video platform and ad marketplace that it bought in 2012 – by US$19.7 million to reflect fair value.
Overall, the firm – which owns international channel brands including HGTV, DIY Network, Food Network, Cooking Channel and Travel Channel – said that fourth quarter net income fell 64.5% year-on-year to US$108.5 million.
However, consolidated revenues for the quarter increased 8.2% to US$654 million.
Scripps attributed this gain to strong ad revenues of US$450 million, up 8.8% year-on-year, and increased affiliate sales, which came in at US$190 million – up 9.7%.
For the full year, consolidated operating revenue was US$2.5 billion, up 9.7% from the prior year. Full-year 2013 consolidated net income attributable to Scripps Networks Interactive was US$505 million, down 25.9% year-on-year.
“Our strong fourth-quarter and full-year operating results validate our success in attracting an engaged, upscale audience with our unique lifestyle content. We create long-term value for our shareholders by building iconic lifestyle brands, a fact that’s borne out in the company’s long and successful track record,” said Scripps Networks Interactive chairman, president and CEO Kenneth W. Lowe.