Earnings: Scripps Networks Does a $244 Million Writeoff on Shopzilla
This story was written by Rafat Ali.
Scripps Networks Interactive (NYSE: SNI), the cable TV and online company that was spun off E W Scripps last year, has reported its Q408 earnings today, and the picture was mixed. While its revenues increased and net income narrowed, it did a huge $244 million non-cash charge against earnings for impairment of goodwill, against its online shopping comparison services Shopzilla. Scripps bought Shopzilla for $525 million in 2005, and UK-based utility shopping site uSwitch for $366 million in 2006, and they form part of SNI's Interactive Services business segment. Revenue for this unit was $71.4 million for Q408, compared with $79.8 million in the year-ago quarter.
Interactive Services results were held back by an overall decline in online retail shopping activity at Shopzilla, lower sponsored-link revenue at Shopzilla, and lower energy switching activity at uSwitch in the U.K., the compay said. In Q407, Scripps recorded a non-cash charge of $411 million, for "impairment of goodwill and other intangible assets" for uSwitch subsidiary.
Meanwhile, its Lifestyle Media segment, which includes HGTV, Food Network, and SN Digital (the online media properties of SNI) reported higher revenues: about $340 million, compared to $317.9 million in the year-ago quarter. Net income was $176 million compared with $175 million in the year-ago period. Revenue from SN Digital businesses grew 12 percent during Q4 to $25 million. More details in release.
By Rafat Ali