Crown Media Holdings, Inc. (CRWN) Posts Solid Financial and Operational Highlights

By @ibtimes on

Crown Media Holdings Inc., owner and operator of cable television channels, today reported its financial and operating results for the three months and year ended December 31, 2010.

“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,” Bill Abbott, president and CEO of Crown Media stated in the press release. “These revenue gains and careful cost management have enabled us to realize our bottom-line financial objectives for both the quarter and the year.”

Crown Media reported revenue of $90.7 million for the fourth quarter of 2010, a 17-percent increase from $77.6 million for the fourth quarter of 2009. Revenue of $287.3 million for 2010 saw a 3-percent increase from $279.6 million for 2009.

For the fourth quarter of 2010, cost of services decreased 6 percent to $38.1 million as compared to $40.5 million during the same quarter of 2009. Cost services for 2010 decreased 7 percent to $137.2 million as compared to $147.6 million reported for 2009.

The company reported marketing expenses of $1.6 million for the quarter ended December 31, 2010, an increase over the $595,000 reported for the quarter ended December 31, 2009. Marketing expenses of $10.2 million for 2010 increased from $6.6 million for 2009 due to the major advertising campaigns surrounding The Martha Stewart Show.

During the fourth quarter of 2009, the company noted that it exercised its rights to terminate two agreements in connection with its January 2010 launch of the Hallmark Channel in high definition at a cost of approximately $4.7 million.

Adjusted EBITDA was $38.1 million for the fourth quarter of 2010 compared to $25.4 million for the same period last year. Net income to common shareholders for the quarter ended December 31, 2010, totaled $18.7 million, or $0.05 per share, compared to $373,000, or $0.00 per share, in the fourth quarter of 2009.

Adjusted EBITDA was $93.1 million for 2010 compared to $81.6 million for 2009. Net income to common shareholders for 2010 totaled $7.8 million, or $0.03 per share, compared to the net loss to common shareholders of $22.6 million, or $0.22 per share, for 2009.

The company also highlighted its operating highlights for 2010, and Abbott attributed the company’s achievements to strategic efforts.

“The strategic initiatives that we put into place this year, including differentiation of our channels, strong relationships with our distribution partners, and our recapitalization – have paved the way for these operating results. As we build on these initiatives, we believe that our efforts will continue to yield positive returns and position us for continued success in the future,” Abbott stated.

Operating highlights for 2010 include: a successful holiday season with the launch of a “Countdown” holiday campaigns on Hallmark Channel and the introduction of holiday themed programming on Hallmark Movie Channel, in which the company reached more than 75 million viewers from mid-November through year-end; improved programming block for The Martha Stewart Show and the entire Hallmark Channel Home; continued growth for Hallmark Movie Channel; a 13-percent increase advertising revenue; growth in subscriber license fees; and positive financial results.

For more information visit www.crownmedia.net

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