Scripps Networks Interactive, Inc. develops lifestyle-oriented content for linear and interactive video platforms in the United States, the United Kingdom and other European markets, the Middle East and Africa, the Asia-Pacific, and Latin America. The company delivers content that focuses on specifically defined topics of interest for audiences and advertisers. It operates national television networks, including Home and Garden Television (HGTV), Food Network, Travel Channel, DIY Network, Cooking Channel, and Great American Country; and Websites comprising HGTV.com, FoodNetwork.com, TravelChannel.com, DIYNetwork.com, CookingChanneltv.com, and GACTV.com that are associated with the aforementioned television brands and other Internet-based businesses serving home, food, and travel related categories. The company also licenses its content to third parties; and brands for consumer products, such as videos, books, kitchenware, and tools. Scripps Networks Interactive, Inc. is headquartered in Knoxville, Tennessee.
(Summary) (Company) (Chart)
8 November 2015
1yr Target $63.68
Payout Ratio 21.29%
1yr Cap Gain 7.85%
1yr Tot Return 9.40%
EPS (ttm) $4.32
EPS next yr $4.84
EPS next 5yr 9.90%
1yr Potential $47.91
Market Cap $7.59 Bil
Revenues $2.70 Bil
Earnings $580.70 Mil
Profit Margin 21.48%
1yr EarnGR 12.64%
3yr EarnGR 15.26%
5yr EarnGR 16.17%
1yr DivGR 33.33%
3yr DivGR 28.40%
5yr DivGR 21.67%
Quick Ratio 10.50
Current Ratio 10.50
Scripps Networks Interactive began in 1993 when the E. W. Scripps Company announced it would launch a 24-hour cable network in the fall of 1994. On December 30, 1994 HGTV went on the air to 6.5 million homes in 50 markets.
In 1995, the official opening for HGTV’s new headquarters in Knoxville took place. The network reached into 10 million homes on November 1 of that year, launched in Canada and online with HGTV.com in 1996, and hit the 25 million subscriber mark in 1997.
Also in 1997, Scripps Networks added its second network with the acquisition of Food Network. The year also saw HGTV execute its first HGTV Dream Home Giveaway, which received more than 1.2 million entries from across the country. By 2011, the number of entries had grown to nearly 80 million.
In 1999 Scripps launched DIY Network. With three brands now under the Scripps Networks umbrella, a $12 million addition was made to the company’s headquarters in Knoxville to provide the infrastructure and technology to support the networks’ growth.
Both HGTV (in November 2002) and Food Network (in September 2003) reached 80 million subscribers each, while Food Network followed HGTV’s footprint into Canada by launching Food Network Canada at the end of 2002.
The first half of the decade also saw Scripps Networks add its fourth and fifth networks to its mix, Fine Living Network (2002) and Great American Country (2004). A few months after the acquisition of Great American Country, Scripps Networks announced the move of the network’s headquarters from Denver, Colorado to Nashville, Tennessee.
In 2008, Scripps Networks Interactive split from the E.W. Scripps Company and received its own listing on the NYSE as ticker symbol SNI. The year also saw Great American Country reach 50 million subscribers, with DIY Network reaching the 50 million subscriber mark in 2009.
Scripps Networks acquired a majority interest in the Travel Channel from Cox Communications for a reported $975 million in late 2009, and the following year rebranded Fine Living Network as Cooking Channel. In April 2011, Scripps announced the sale of Shopzilla to Symphony Technology Group for $165 million. Scripps, from within its Travel Channel unit also invested in Oyster.com, a hotel research and booking site.
On August 15, 2011, Virgin Media agreed to sell its 50% stake in UKTV to Scripps Networks in a deal worth £339m. Scripps paid £239m in cash, and about £100m to acquire the outstanding preferred stock and debt owed by UKTV to Virgin Media. Completion of the transaction was contingent on regulatory approvals in Ireland and Jersey, which it received on October 3, 2011.
On March 22, 2012, Scripps Networks announced that it had agreed to pay £65m (US$102.7m) to acquire Travel Channel International Limited, the UK-based distributor of the Travel Channel brand across the Europe, Middle East, Africa and Asia Pacific markets. The deal was completed on May 1, 2012 following regulatory approval. The international channel will be integrated with Scripps Networks' own Travel Channel.
On December 11, 2012 One Kings Lane, a home decor website, announced that Scripps Networks had invested in its Series D financing. Scripps Networks invested $15M in exchange for a 3% equity stake in the company.
On June 5, 2013, Scripps Networks launched ulive, a digital-only lifestyle video brand that combines video content from Scripps Networks’ media brands with premium third-party videos and original series. Consisting of ulive.com, this premium video portal and distribution network expands on Scripps Networks’ food, home and travel verticals, adding coverage for topics including parenting and wellness.
Scripps Networks has launched Food Network in the United Kingdom and other European markets as well as in the Middle East and Africa. The company recently acquired a 50 percent interest in UKTV, one of the U.K. leading multi-channel television programming companies. Scripps Networks is also is preparing to launch Food Network in Indonesia, bringing the channel to five countries in Asia in one year’s time. Scripps Networks' channels are also available through outlets on U.S. military bases and U.S. embassies around the world via the American Forces Network.
In May 2013, the company announced that it will open a Brazilian headquarters, in São Paulo, and has appointed the former vice-president of strategy of FOX as managing director. Scripps Networks will broadcast its channels to the entire Latin America region.
On 2 July 2015 SNI finalized acquisiton of 100% stake in N-Vision company which has 52.7% stake in Polish television group TVN. TVN group broadcasts 12 channels in Poland, including: TVN, TVN 24 and TVN 24 Biznes i Świat.
For those individuals that have read several of the articles included in this website, you already know I'm always interested in entertainment companies. I really believe that entertainment will capture more and more of the average Americans budget in the years ahead. Any company creating and producing entertainment will benefit from this trend. I'm already an owner of shares of many of the companies in this industry and Scripps Network Interactive is simply another one of these companies.
I'm also interested in companies that grow their dividends over time. Scripps Network Interactive is one of those companies too. Looking at the growth rates above and seeing that the earnings growth rates are in the upper 20s and the dividend growth rates are in the upper teens make me very interested in this company. In fact, I like all of the fundamentals above. They're the kind of numbers I look for when investing any company.
Unfortunately it appears that the best time to have bought the stock what about a month ago when it fell below $50 per share. The fundamentals would have been the same but the one year return on investment would have been in the mid to upper 20%. I know that sounds like advice after the fact, but at it's current price of $59 I would simply have to wait for another pullback.
I intend to start a position in this company if and when it pulls back into the $50-$53 range. I already know this is a great company to own but I need to own it at a great price too. And right now $59 is just too high for me.