Crown Media Holdings Inc. on Thursday reported a 71 percent decline in fourth-quarter earnings, which were hurt by costs associated with contract terminations.

The Studio City operator of Hallmark cable channels reported net income of $373,000 (less than 1 cent per share), compared with net income of $1.3 million (1 cent) a year earlier. The company had $4.7 million in costs associated with ending two agreements associated with its January launch of a high-definition version of the Hallmark Channel.

Revenue rose 3 percent to $77.6 million, which Hallmark attributed to subscriber growth and higher programming fees. Subscriber fee revenue increased 14 percent.

“Although we continue to be impacted by the economic challenges facing our industry, we finished the year with a strong fourth quarter of ratings success for the holiday season,” said Chief Executive Bill Abbott in a press release.

For fiscal 2010, Crown Media lost $22.6 million (22 cents), a 39 percent smaller loss than in 2008. Full year revenue fell less than 1 percent to less than $280 million.

The company, which recapitalized and significantly lowered its debt last month, is anticipating heightened interest in Hallmark Channel with the upcoming launch of a 2-1/2 hour Martha Stewart lifestyle programming block that includes “The Martha Stewart Show.”

Shares were up 5 cent, or 3 percent, to $1.72 in midday trading on the Nasdaq.