Thursday, 09 March 2017 08:15 AM
Upcoming AWS Coverage on Grupo Televisa Post-Earnings Results
LONDON, UK / ACCESSWIRE / March 9, 2017 / Active Wall St. announces its post-earnings coverage on Scripps Networks Interactive, Inc. (NASDAQ: SNI). The Company disclosed its fourth quarter and fiscal 2016 financial results on February 21, 2017. The owner of cable channels HGTV, Food Network, and Travel Channel reported better-than-expected revenue numbers and provided 2017 outlook. Register with us now for your free membership at:
http://www.activewallst.com/register/
One of Scripps Networks Interactive's competitors within the Broadcasting - TV space, Grupo Televisa, S.A.B. (NYSE: TV), reported on February 23, 2017 its results for Q4 and full year 2016. AWS will be initiating a research report on Grupo Televisa in the coming days.
Today, AWS is promoting its earnings coverage on SNI; touching on TV. Get our free coverage by signing up to:
http://www.activewallst.com/register/
Earnings Reviewed
For the three months ended December 31, 2016, Scripps Networks consolidated operating revenues were $888.7 million, up 4.3% over the prior-year's same period. This increase was driven by the strength of the US advertising market coupled with overall ratings and impressions growth, as well as growth in the Company's international businesses. Scripps Networks operating revenues numbers topped analysts' consensus estimates of $881.2 million. During the reported quarter, Scripps Networks' advertising revenues were $641.5 million, up 7.5%, and distribution revenues were $221.2 million, down 2.1% both on a y-o-y basis.
Scripps Networks' consolidated operating revenues for FY16 were $3.4 billion, up 12.7% on a y-o-y basis. For FY16, the Company reported record consolidated advertising revenues of $2.4 billion, an increase of 17.2%. Scripps Networks stated that in the US, advertising revenues increased 9.6% and surpassed $2.0 billion for the first time ever, driven by improved ratings for all six US networks in total day for the C-3 viewing window. The Company noted that HGTV, DIY Network, and Cooking Channel had their highest-rated and most watched year ever. In FY16, revenues for the digital businesses improved 9.4% compared to the prior year. In 2016, Scripps Lifestyle Studios delivered more than 5 billion total video views across various digital platforms.
The Company's Q4 2016, consolidated operating income was $227.8 million, down 17.2% from the prior-year's comparable period. The decline was driven by a non-cash accounting adjustment related to the write-down of goodwill and related intangible assets for certain international investments acquired in 2012 and 2013 non-cash accounting adjustment. The Company's consolidated adjusted segment profit for the reported quarter was $340.5 million, up 3.4% on a y-o-y basis. Scripps Networks' full year 2016 consolidated operating income was $1.1 billion, up 4.0% on a y-o-y basis. The Company's consolidated adjusted segment profit for FY16 was $1.4 billion, an increase of 10.1%. The y-o-y improvement in both operating income and consolidated adjusted segment profit was primarily due to the growth in revenues and the inclusion of TVN for the full year.
Consolidated net income attributable to Scripps Networks in Q4 2016 was $52.1 million, or $0.40 per diluted share compared with $164.7 million, or $1.27 per diluted share, for Q4 2015. The decline was primarily driven by accounting adjustment, tax effects and non-cash write-down of an equity-method investment. The Company's reported quarter consolidated adjusted net income was $133.7 million, and consolidated adjusted diluted earnings per share were $1.02, which was below market estimates for earnings of $1.05 per share.
Consolidated net income attributable to Scripps Networks in FY16 increased 11.0% to $673.6 million, or $5.18 per diluted share. The Company's consolidated adjusted net income increased 7.0% on a y-o-y basis to $686.8 million, and consolidated adjusted diluted earnings per shares were $5.29.
Segment Results
Scripps Networks' US Networks' operating revenues for Q4 2016 were $730.6 million, an increase of 4.1% on a y-o-y basis. Advertising revenues were $523.3 million, up 9.4%. This improvement reflects the continued strength in the US advertising market for its lifestyle brands and overall ratings improvement in the reported quarter. US Networks' distribution revenues had decreased by 3.1% to $193.4 million. US Networks' operating income for Q4 2016 was $301.4 million, an increase of 6.1% compared with the prior year's same quarter.
Scripps Networks' International Networks' operating revenues for Q4 2016 were $165.4 million, an increase of 1.5% compared with the prior year's corresponding quarter. Revenues at TVN increased 2.8% in local currency for the reported quarter. International Networks' operating loss was $42.6 million compared with operating income of $19.4 million in the prior year's same quarter, a result of the previously mentioned non-cash accounting adjustment. Adjusted segment profit for International Networks was $40.9 million compared to $40.0 million in Q4 2015, reflecting the increase in operating revenues.
Financial Summary
As of December 31, 2016, Scripps Networks had $122.93 million in cash & cash equivalents. The Company finished Q4 2016 at approximately 2.6 times gross leverage, down from 2.8 times at the end of last quarter and down from 3.2 times at the end of 2015. Additionally, in the reported quarter, Scripps' retired the last of TVN's high interest-bearing debt.
Guidance
Scripps Networks expect 2017 revenue growth to be approximately 6%. Additionally, within this anticipated revenue growth, the Company expects to generate positive distribution revenue growth beginning in Q1 2017 and that the distribution revenue growth rate will increase during the year. As a result of the anticipated revenue growth, partially offset by increased support costs, Scripps Networks is projecting adjusted segment profit to increase approximately 3%.
Stock Performance
On Wednesday, March 08, 2017, the stock closed the trading session at $78.54, marginally up 0.26% from its previous closing price of $78.34. A total volume of 1.23 million shares have exchanged hands, which was higher than the 3-month average volume of 1.11 million shares. Scripps Networks Interactive's stock price rallied 13.50% in the last three months, 24.31% in the past six months, and 24.39% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 10.05%. The stock is trading at a PE ratio of 15.16 and has a dividend yield of 1.53%.
Active Wall Street:
Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
AWS has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email [email protected]. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: [email protected]
Phone number: 1-858-257-3144
Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active Wall Street