Scripps Networks Interactive Reports Fourth Quarter Financial Results

Scripps Networks Interactive Reports Fourth Quarter Financial Results

CINCINNATI, Feb. 5 /PRNewswire-FirstCall/ -- Scripps Networks Interactive Inc. (NYSE:SNI) today reported fourth-quarter operating results reflecting solid revenue growth at its Lifestyle Media television networks and related lifestyle Internet businesses.

The improved Lifestyle Media results, however, were offset by lower revenues at Shopzilla and uSwitch, the online comparison shopping brands that comprise the company's Interactive Services business segment.

The Lifestyle Media segment includes HGTV, Food Network, DIY Network, Fine Living Network, Great American Country and SN Digital, the segment's growing portfolio of online lifestyle content businesses.

Total company revenue for Scripps Networks Interactive for the three-month period ending Dec. 31 was up 3.5 percent to $412 million compared with $398 million during the same fourth-quarter period a year ago.

The company recorded a net loss during the fourth quarter of $154 million, or 94 cents per share, compared with a net loss of $299 million, or $1.83 per share, for the same period in 2007. Results for both periods include the effects of writedowns related to asset impairment.

Excluding these non-cash impairment charges, the company's consolidated net income for the fourth quarter 2008 was 55 cents per share compared with 50 cents in 2007.

Consolidated net income for the fourth quarter includes the effect of a $244 million, or $1.49 per share, non-cash charge against earnings for impairment of goodwill. The charge is a result of the changing environment for online comparison shopping services and the subsequent strategic repositioning of Shopzilla for long-term profit growth.

In 2007, the company recorded a non-cash charge of $411 million, reducing net income by $382 million, or $2.33 per share, in the fourth quarter for impairment of goodwill and other intangible assets for its uSwitch subsidiary in the United Kingdom. (See Note 1 to results of operations for a description of charges and credits.)

For comparison purposes, prior-year results include an estimated allocation of Scripps Networks Interactive's corporate expenses paid by The E. W. Scripps Company. On July 1, 2008, Scripps Networks Interactive was spun off from E. W. Scripps as a separate publicly traded company. The prior year's estimated corporate expenses are not representative of what corporate expenses are for Scripps Networks Interactive as an independent company.

During the fourth quarter 2008, financial performance at the company's Lifestyle Media segment was favorably affected by growth in advertising sales, strong viewership trends, particularly at Food Network and DIY Network, and growth in affiliate fee revenue. Lifestyle Media revenue grew 7.0 percent during the fourth quarter to $340 million compared with $318 million in 2007. Segment profit was $176 million compared with $175 million during the prior year. (See Note 2 for a description of segment profit.)

Revenue from the Lifestyle Media segment's SN Digital interactive businesses grew 12 percent during the fourth quarter to $25 million. SN Digital properties include related Web sites for each of the television networks, plus other lifestyle content sites such as HGTVPro.com, RecipeZaar.com and FrontDoor.com.

Revenue from the company's Interactive Services business segment was $71.4 million compared with $79.8 million in 2007. Segment profit was $18.9 million compared with $24.7 million during the same period a year earlier. 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.

"Led by HGTV and Food Network, the company had a very good fourth quarter, especially when considering the strong macro-economic headwinds we were facing," said Kenneth W. Lowe, chairman, president and chief executive officer of Scripps Networks Interactive. "The vitality of our lifestyle television networks is evident in their consistently solid performance, even when times are difficult.

"All of our television networks grew during the three-month period, as we were able to leverage the unique, engaged and growing audiences each brand aggregates," Lowe said. "Strong double-digit revenue growth at our newer networks demonstrates the success we're having establishing these valuable brands. And at SN Digital, we finished the year on a definite high note with double-digit revenue growth. Our resolve to be the leading provider of food and shelter lifestyle content on any and all media platforms clearly is gaining momentum.

"At our Interactive Services businesses, fourth quarter results reflect the weakening economy, particularly as it relates to the exposure Shopzilla has to the challenging retail spending environment and changing competitive forces within the online comparison shopping marketplace." Lowe said. "Interactive Services results also were affected by lower energy switching activity at uSwitch during the fourth quarter, which followed an extended period of robust switching during the first three quarters of the year. Going forward, we expect operating results at our Interactive Services segment to remain under pressure as we execute our competitive repositioning of Shopzilla."

   Here are fourth-quarter results by operating segment:    Lifestyle Media  

Lifestyle Media advertising revenue increased 3.3 percent to $263 million. Affiliate fee revenue was $70.4 million, up 21 percent.

Programming expenses increased 9.7 percent to $68.7 million. Non-programming costs increased 13 percent to $96.6 million. The increase in non-programming costs is attributable primarily to the company's strategic investment in its interactive lifestyle businesses (SN Digital).

Lifestyle Media segment profit was $176 million compared with $175 million in the prior-year period.

Operating revenue at HGTV was up 4.2 percent to $149 million. HGTV now reaches 98 million subscribers compared with about 96 million at the end of the fourth quarter 2007.

Food Network operating revenue increased 5.1 percent to $128 million. Food Network reaches 98 million subscribers, up from about 96 million at the end of the fourth quarter 2007.

Revenue at DIY Network was $16.7 million, up 28 percent. DIY can be seen in about 49 million households, up from about 47 million households a year ago.

Fine Living Network revenue increased 16 percent to $12.8 million. Fine Living reaches nearly 54 million households vs. 50 million households last year.

Revenue at Great American Country was $7.1 million, up 16 percent. Great American Country can be seen in about 55 million homes compared with about 53 million homes a year ago.

Revenue from the Lifestyle Media segment's interactive businesses (SN Digital) grew 12 percent to $25.0 million.

Interactive Services

Interactive Services revenue was $71.4 million for the fourth quarter compared with $79.8 million in the same period 2007.

Segment profit was $18.9 million compared with $24.7 million in the fourth quarter of 2007.

Full-year results

Consolidated operating revenue in 2008 grew 10 percent to $1.6 billion from $1.4 billion in the prior year.

Excluding non-cash charges, the company's consolidated net income for the full-year 2008 was $1.63 per share compared with $1.56 per share in 2007.

Including the effects of non-cash charges, 2008 consolidated net income was $23.6 million, or 14 cents per share, compared with a net loss of $126 million, or 77 cents per share in 2007. Net income in 2008 was reduced by $244 million, or $1.49 per share, as a result of the non-cash writedown of goodwill at Shopzilla. Net income in 2007 was reduced by $382 million, or $2.33 per share, as a result of a non-cash writedown of goodwill and other intangible assets at uSwitch.

Following are full-year results by operating segment:

Total Lifestyle Media revenue increased 11 percent to $1.3 billion from $1.2 billion the prior year. Segment profit increased 7.0 percent to $648 million. Advertising revenue grew 8.3 percent to $1.0 billion. Affiliate fee revenue was up 18 percent to $277 million. Segment costs and expenses increased 14 percent to $680 million.

Total Interactive Services revenue increased 8.6 percent to $278 million from $256 million the prior year. Segment profit increased 70 percent to $67.7 million compared with $39.8 million the previous year.

Total company capital expenditures were $81 million vs. $74 million in 2007.

Conference call

The senior management team of Scripps Networks Interactive will discuss the company's fourth quarter results during a telephone conference call at 10 a.m. EST today. Scripps Networks Interactive will offer a live webcast of the conference call. To access the webcast, visit www.scrippsnetworksinteractive.com and follow the Investor Relations link at the top of the page. The webcast link can be found next to the microphone icon.

To access the conference call by telephone, dial 1-800-230-1951 (U.S.) or 612-332-0530 (international) approximately ten minutes before the start of the call. Callers will need the name of the call, "fourth quarter earnings report," to be granted access. Callers also will be asked to provide their name and company affiliation. The media and general public are granted access to the conference call on a listen-only basis.

A replay line will be open from 12 p.m. EST Feb. 5 until 11:59 p.m. EST Feb. 12. The domestic number to access the replay is 1-800-475-6701 and the international number is 1-320-365-3844. The access code for both numbers is 983918. A replay of the conference call will also be available online. To access the audio replay, visit www.scrippsnetworksinteractive.com approximately four hours after the call, choose Investor Relations, then follow the Audio Archives link on the left side of the page.

Forward-looking statements

This press release contains certain forward-looking statements related to the company's businesses that are based on management's current expectations. Forward-looking statements are subject to certain risks, trends and uncertainties, including changes in advertising demand and other economic conditions that could cause actual results to differ materially from the expectations expressed in forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. The company's written policy on forward-looking statements can be found on page 23 of its Form 10 information statement that was filed June 11, 2008, with the Securities and Exchange Commission, and on page F-21 of its most recent Form 10Q.

The company undertakes no obligation to publicly update any forward-looking statements to reflect events or circumstances after the date the statement is made.

About Scripps Networks Interactive

Scripps Networks Interactive Inc. is the leading developer of lifestyle-oriented content for television and the Internet, where on-air programming is complemented with online video, social media areas and e-commerce components on companion Web sites and broadband vertical channels. The company's media portfolio includes: Lifestyle Media, with popular lifestyle television and Internet brands HGTV, Food Network, DIY Network, Fine Living Network and country music network Great American Country (GAC); and Interactive Services, with leading online search and comparison shopping services BizRate, Shopzilla and uSwitch.

   SCRIPPS NETWORKS INTERACTIVE, INC.   CONSOLIDATED AND COMBINED BALANCE SHEETS   (unaudited)    (in thousands, except per share data)                                                        As of December 31,                                                       2008          2007    ASSETS   Current assets:     Cash and cash equivalents                        $9,970        $12,532     Short-term investments                            2,703     Accounts and notes receivable      (less allowances - 2008, $5,480;      2007, $3,945)                                  372,736        364,824     Programs and program licenses                   238,319        212,868     Other current assets                             14,296         12,533   Total current assets                              638,024        602,757   Investments                                        40,279         38,444   Property, plant and equipment, net                201,512        173,255   Goodwill and other intangible assets:     Goodwill                                        424,213        665,154     Other intangible assets, net                    110,810        129,385   Total goodwill and other intangible assets, net   535,023        794,539   Other assets:     Programs and program licenses      (less current portion)                         235,967        261,607     Unamortized network distribution incentives     107,796        135,367     Other non-current assets                         14,607         11,858   Total other assets                                358,370        408,832   Total Assets                                   $1,773,208     $2,017,827    LIABILITIES AND SHAREHOLDERS' EQUITY   Current liabilities:     Accounts payable                                $14,960         $8,010     Program rights payable                           15,240         16,555     Customer deposits and unearned revenue           11,045         15,018     Accrued liabilities:       Employee compensation and benefits             35,451         28,780       Accrued marketing and advertising costs        18,671         17,587       Other accrued liabilities                      70,927         58,630   Total current liabilities                         166,294        144,580   Deferred income taxes                             140,735        115,474   Long-term debt (less current portion)              80,000        503,361   Other liabilities (less current portion)          104,239        102,626   Total liabilities                                 491,268        866,041   Minority interests                                146,733        138,498   Shareholders' equity:     Preferred stock, $.01 par - authorized:      25,000,000 shares; none outstanding     Common stock, $.01 par:       Class A - authorized: 240,000,000 shares;        issued and outstanding: 127,184,107 shares        for 2008;                                      1,272       Voting - authorized: 60,000,000 shares;        issued and outstanding: 36,568,226        shares for 2008                                  366   Total                                               1,638   Additional paid-in capital                      1,222,856   Retained earnings (deficit)                      (120,774)   Parent company's net investment                                  971,889   Accumulated other comprehensive income             31,487         41,399   Total shareholders' equity                      1,135,207      1,013,288   Total Liabilities and Shareholders' Equity     $1,773,208     $2,017,827      SCRIPPS NETWORKS INTERACTIVE, INC.   CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS   (unaudited)    (in thousands, except per share data)                                                 Three months ended                                                   December 31,                                                2008         2007      Change    Operating revenues                         $411,520     $397,717     3.5 %   Costs and expenses                         (230,638)    (210,785)    9.4 %   Depreciation and amortization of    intangible assets                          (19,335)     (21,950)  (11.9)%   Write-down of goodwill and intangible    assets                                    (243,700)    (411,006)   Gains (losses) on disposal of PP&E               47          (55)    Operating income (loss)                     (82,106)    (246,079)  (66.6)%   Interest expense                               (898)      (7,662)  (88.3)%   Equity in earnings of affiliates              1,321        5,468   (75.8)%   Gains (losses) on repurchases of debt   Miscellaneous, net                            1,636         520    Income (loss) from continuing operations    before income taxes and minority interest  (80,047)    (247,753)  (67.7)%   Provision for income taxes                  (47,130)     (25,059)   88.1 %    Income (loss) from continuing operations    before minority interest                  (127,177)    (272,812)  (53.4)%   Minority interest                           (26,370)     (25,725)    2.5 %    Income (loss) from continuing operations   (153,547)    (298,537)  (48.6)%   Income (loss) from discontinued operations    net of tax                                                 (262)   Net income (loss)                         $(153,547)   $(298,799)  (48.6)%    Net income (loss) per diluted share of    common stock (1):      Income (loss) from continuing operations  $(0.94)      $(1.83)      Income (loss) from discontinued       operations                                 0.00        (0.00)   Net income (loss) per diluted share of    common stock                                $(0.94)      $(1.83)    Weighted average basic shares    outstanding (1)                            163,338      163,466   Weighted average diluted shares    outstanding (1)                            163,338      163,466                                                 Twelve months ended                                                   December 31,                                                2008         2007     Change    Operating revenues                       $1,590,637   $1,441,265    10.4 %   Costs and expenses                        (940,070)     (849,109)   10.7 %   Depreciation and amortization of    intangible assets                         (73,937)      (86,694)  (14.7)%   Write-down of goodwill and intangible    assets                                   (243,700)     (411,006)   Gains (losses) on disposal of PP&E            (788)         (687)   14.7 %    Operating income (loss)                    332,142        93,769   Interest expense                           (14,207)      (36,770)  (61.4)%   Equity in earnings of affiliates            15,498        17,603   (12.0)%   Gains (losses) on repurchases of debt      (26,380)        1,245   Miscellaneous, net                           2,266         2,706   (16.3)%    Income (loss) from continuing operations    before income taxes and minority interest 309,319        78,553   Provision for income taxes                (193,371)     (126,387)   53.0 %    Income (loss) from continuing operations    before minority interest                  115,948       (47,834)   Minority interest                          (92,391)      (82,534)   11.9 %    Income (loss) from continuing operations    23,557      (130,368)   Income (loss) from discontinued    operations, net of tax                                    3,961   Net income (loss)                          $23,557     $(126,407)    Net income (loss) per diluted share of    common stock (1):      Income (loss) from continuing       operations                               $0.14        $(0.80)      Income (loss) from discontinued       operations                                0.00          0.02   Net income (loss) per diluted share of    common stock                                $0.14        $(0.77)    Weighted average basic shares    outstanding (1)                           163,245       163,466   Weighted average diluted shares    outstanding (1)                           164,131       163,466     For comparison purposes, first half 2008 and year-to-date and fourth    quarter 2007 results include estimates of Scripps Networks Interactive's    portion of The E. W. Scripps Company's corporate expenses for those    periods.  Such estimates are not representative of our costs as a    stand-alone company.    (1) For the quarter and year-to-date periods of 2007, diluted EPS was       computed using the number of common shares outstanding on the       spin-off-date.    Net income per share amounts may not foot since each is calculated   independently.    See notes to results of operations.                         Notes to Results of Operations    1. OTHER CHARGES AND CREDITS    Net income was affected by the following:    Write-down of goodwill and other intangible assets  

In accordance with Financial Accounting Standards ("FAS") 142 and FAS 144, we perform annual impairment tests on Goodwill and also perform impairment tests on other long-lived assets whenever events or circumstances indicate the carrying amounts of the assets may not be recoverable. An impairment charge is recorded when the fair value of an asset is below its carrying value.

Our fourth quarter 2008 operating results include a write-down of Shopzilla goodwill that reduced net income $244 million, $1.49 per share. The charge is a result of the changing environment for online comparison shopping services and the subsequent strategic repositioning of Shopzilla for long-term profit growth.

During 2007, falling energy prices in the United Kingdom resulted in less switching activity and lower revenues at our uSwitch business. The declines in energy switching activity and the negative impact this decline was expected to have on uSwitch's future results resulted in the recording of a non-cash impairment charge totaling $411 million. Net income was reduced by $382 million, $2.33 per share.

Separation costs

As a result of the distribution of Scripps Networks Interactive, Inc. ("SNI") to the shareholders of The E. W. Scripps Company ("E. W. Scripps"), SNI employees holding share-based equity awards, including share options and restricted shares, have received modified awards in our Company's stock. Under FAS 123(R), the adjustment to the outstanding share-based equity awards is considered a modification and incremental stock-based compensation expense is recognized to the extent that the fair value of the awards immediately prior to the modification is less than the fair value of the awards immediately after the modification. In the third quarter of 2008, we recorded a non-cash charge of $4.9 million related to the modification of these stock-based awards. Net income was reduced by $3.2 million, $.02 per share.

In the second quarter of 2008, E. W. Scripps redeemed their outstanding notes which were previously allocated to us in our combined financial statements. The associated loss on extinguishment from such redemption, which is not expected to be deductible for income tax purposes, has been allocated to us in our statement of operations resulting in a reduction to year-to-date net income of $26.4 million, $.16 per share.

Other costs incurred in connection with the separation of the Company from E. W. Scripps totaled $3.8 million in 2008 reducing year-to-date net income $2.5 million, $.02 per share.

Income tax adjustments

In the fourth quarter of 2007, we changed our estimate of the realizable value of certain uSwitch tax benefits recorded in prior periods. Net income was reduced by $9.5 million, $.06 per share.

2. SEGMENT INFORMATION

We determine our business segments based upon our management and internal reporting structure. Our reportable segments are strategic businesses that offer different products and services.

Lifestyle Media includes five national television networks, Internet businesses and other electronic content services primarily in the United States. Lifestyle Media also includes a 7.25% interest in FOX-BRV Southern Sports Holdings, which comprises the Sports South and Fox Sports Net South regional television networks. Our networks also operate domestically and internationally through licensing agreements and joint ventures with other entities. We own approximately 69% of Food Network and approximately 94% of Fine Living.

Interactive Services includes our online comparison shopping services, Shopzilla, BizRate and uSwitch. Shopzilla and BizRate are product comparison shopping services that help consumers find products offered for sale on the Web by online retailers. Shopzilla and BizRate also operate a Web-based consumer feedback network which collects millions of consumer reviews of stores and products each year. uSwitch operates an online comparison service that helps consumers compare prices and arrange for the purchase of a range of essential home services including gas, electricity, home phone, broadband providers and personal finance products, primarily in the United Kingdom.

Our chief operating decision maker (as defined by FAS 131, "Segment Reporting") evaluates the operating performance of our business segments using a measure we call segment profit. Segment profit excludes interest, income taxes, depreciation and amortization, divested operating units, restructuring activities, investment results and certain other items that are included in net income determined in accordance with accounting principles generally accepted in the United States of America.

Items excluded from segment profit generally result from decisions made in prior periods or from decisions made by corporate executives rather than the managers of the business segments. Depreciation and amortization charges are the result of decisions made in prior periods regarding the allocation of resources and are therefore excluded from the measure. Financing, tax structure and divestiture decisions are generally made by corporate executives. Excluding these items from our business segment performance measure enables us to evaluate business segment operating performance for the current period based upon current economic conditions and decisions made by the managers of those business segments in the current period.

Information regarding the operating performance of our business segments determined in accordance with FAS 131 and reconciliation to our results of operations is as follows:

   (in thousands)                                              Three months ended                                                December 31,                                             2008          2007       Change    Segment operating revenues:     Lifestyle Media                        $340,254      $317,898      7.0 %     Interactive Services                     71,435        79,819    (10.5)%     Corporate     Intersegment eliminations                  (169)    Total operating revenues                 $411,520      $397,717      3.5 %    Segment profit (loss):     Lifestyle Media                        $176,271      $175,000      0.7 %     Interactive Services                     18,871        24,680    (23.5)%     Corporate                               (12,939)       (7,280)    77.7 %    Depreciation and amortization of    intangibles                              (19,335)      (21,950)   (11.9)%   Write-down of goodwill and intangible    assets                                  (243,700)     (411,006)   Gains (losses) on disposal of PP&E             47           (55)   Interest expense                             (898)       (7,662)   (88.3)%   Gains (losses) on repurchases of debt   Miscellaneous, net                          1,636           520    Income (loss) from continuing    operations before income taxes and    minority interests                      $(80,047)    $(247,753)   (67.7)%                                              Twelve months ended                                                December 31,                                             2008          2007       Change    Segment operating revenues:     Lifestyle Media                      $1,312,313    $1,184,901     10.8 %     Interactive Services                    278,407       256,364      8.6 %     Corporate                                    86     Intersegment eliminations                  (169)    Total operating revenues               $1,590,637    $1,441,265    10.4 %    Segment profit (loss):     Lifestyle Media                        $647,557      $605,014     7.0 %     Interactive Services                     67,686        39,751    70.3 %     Corporate                               (49,178)      (35,006)   40.5 %    Depreciation and amortization of    intangibles                              (73,937)      (86,694)  (14.7)%   Write-down of goodwill and intangible    assets                                  (243,700)     (411,006)   Gains (losses) on disposal of PP&E           (788)         (687)   14.7 %   Interest expense                          (14,207)      (36,770)  (61.4)%   Gains (losses) on repurchases of debt     (26,380)        1,245   Miscellaneous, net                          2,266         2,706   (16.3)%    Income (loss) from continuing    operations before     income taxes and minority interests    $309,319       $78,553     

Certain items required to reconcile segment profitability to consolidated results of operations determined in accordance with accounting principles generally accepted in the United States of America are attributed to particular business segments. Significant reconciling items attributable to each business segment are as follows:

                                 Three months ended    Twelve months ended                                    December 31,           December 31,                                   2008       2007       2008        2007    (in thousands)    Depreciation:     Lifestyle Media               $6,399     $5,399   $24,330     $19,923     Interactive Services           6,972      6,104    26,738      20,323     Corporate                         90        320       259       1,002    Total depreciation             $13,461    $11,823   $51,327     $41,248    Amortization of intangibles:     Lifestyle Media               $1,270       $824    $3,979      $3,269     Interactive Services           4,604      9,303    18,631      42,177    Total amortization of    intangibles                    $5,874    $10,127   $22,610     $45,446    Losses (gains) on disposal of    PP&E:     Lifestyle Media                 $(43)      $103      $721        $172     Interactive Services              (3)       (36)       (3)        516     Corporate                         (1)       (12)       70          (1)    Losses (gains) on disposal of    PP&E                             $(47)       $55      $788        $687    Write-down of goodwill and    intangible assets            $243,700   $411,006  $243,700    $411,006      3. SUPPLEMENTAL FINANCIAL INFORMATION   

Our Lifestyle Media division earns revenue primarily from the sale of advertising time in our national television networks' programming, affiliate fees paid by cable and satellite television operators that carry our network programming, the licensing of its content to third parties, the licensing of its brands for consumer products such as books and kitchenware, and from the sale of advertising on our Lifestyle Media affiliated Web sites (SN Digital).

   Supplemental information for Lifestyle Media is as follows:      (in thousands)                                             Three months ended                                               December 31,                                            2008         2007      Change    Operating revenues by brand:    HGTV                                    $148,846     $142,866      4.2 %   Food Network                             127,555      121,382      5.1 %   DIY                                       16,667       12,991     28.3 %   Fine Living                               12,827       11,085     15.7 %   GAC                                        7,087        6,133     15.6 %   SN Digital                                25,048       22,312     12.3 %   Other/intersegment eliminations            2,224        1,129     97.0 %    Operating revenues by type:    Advertising                             $263,060     $254,543      3.3 %   Affiliate fees, net                       70,379       58,297     20.7 %   Other                                      6,815        5,058     34.7 %    Subscribers (1):    HGTV   Food Network   DIY   Fine Living   GAC                                               Twelve months ended                                               December 31,                                             2008         2007      Change    Operating revenues by brand:    HGTV                                     $596,584     $549,641     8.5 %   Food Network                              485,914      436,354    11.4 %   DIY                                        64,005       48,879    30.9 %   Fine Living                                52,464       43,061    21.8 %   GAC                                        25,175       24,496     2.8 %   SN Digital                                 81,894       75,410     8.6 %   Other/intersegment eliminations             6,277        7,060   (11.1)%    Operating revenues by type:    Advertising                            $1,005,330     $928,221     8.3 %   Affiliate fees, net                       277,370      235,248    17.9 %   Other                                      29,613       21,432    38.2 %    Subscribers (1):    HGTV                                       97,700       95,800     2.0 %   Food Network                               97,900       95,800     2.2 %   DIY                                        49,400       46,900     5.3 %   Fine Living                                53,900       49,900     8.0 %   GAC                                        55,100       53,100     3.8 %     (1) Subscriber counts are according to the Nielsen Homevideo Index of       homes that receive cable networks, with the exception of Fine Living       which is not yet rated by Nielsen and represent comparable amounts       estimated by us.  

Source: Scripps Networks Interactive Inc.

CONTACT: Mark Kroeger, Scripps Networks Interactive Inc.,
+1-513-824-3227, mark.kroeger@scrippsnetworks.com

Web site: http://www.scrippsnetworksinteractive.com/

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Profile: International Entertainment