Crown Media Holdings Inc. said Thursday that it had lowered its third-quarter loss thanks to higher advertising sales as its Hallmark Channel reached record ratings.

Crown Media reported a loss of $38 million (-36 cents per share), compared to a loss of $84 million (-80 cents) for the same period a year earlier. Crown has reported a loss every quarter since it first sold shares to the public in 2000, according to Bloomberg data.

Revenues for the Studio City-based operator of the Hallmark Channel gained 17 percent to $55 million.

Crown said that ad sales rose 19 percent to $48 million as the Hallmark Channel attracted more viewers with its made-for-TV movies. Subscriber growth also helped push fee revenue up 23 percent to $7.4 million, Crown said.

The Hallmark Channel also hit a high mark hitting its highest rating ever, making it the eighth ranked ad-supported network during prime time, Crown said.

The company added that it will introduce its first high-definition service, Hallmark Movie Channel HD, in early 2008.

Shares in Crown were down 1 percent to $6.83 in early trading Thursday.