Crown Media Holdings Inc. reported fourth quarter growth as the cable company saw more viewers tuning into its new Martha Stewart shows and holiday programming.
The Studio City operator of the cable Hallmark Channel and the Hallmark Movie Channel on Thursday reported net income of $18.7 million (5 cents per share), compared with $373,000 (0 cents) a year earlier.
Revenues rose 17 percent to $90.7 million as the family-oriented media company benefited from strong holiday season advertising. Advertising revenue was up 13 percent to $68.2 million and subscriber revenue rose 34 percent to $21.9 million. In addition, Crown said its cost of services fell 6 percent to $38.1 million.
The Hallmark Channel’s new home programming block — anchored by the “Martha Stewart Show” and other Stewart-produced shows that had a slow start when launched last year — picked up in ratings on the strength of its holiday programming, especially among key women ages 25 to 54, the company said.
Chief Executive Bill Abbott said advertisers were influenced both by the rating growth for the Stewart shows and by now having Nielsen ratings available for its Hallmark Movie Channel.
“Our solid quarter of results, with strong holiday seasons on Hallmark Channel and Hallmark Movie Channel, and continued development of the Hallmark Channel Home programming block, fueled advertising revenue gains and increased subscriber license fees,” Abbott said in a statement.
Shares closed up 17 cents, or 7 percent, to $2.61 on the Nasdaq.