Scripps Networks Interactive 2016 Annual Report

Letter to Shareholders (Continued) Great American Country delivered its highest-rated year since 2007. Ratings for adults 25 to 54 improved 36% compared to the prior year while ratings for women 25 to 54 grew 41%. Content including Flea Market Flip, Going RVV and Living Alaska were among the network’s most watched shows. ZDV DQ H[FHSWLRQDO \HDU IRU RXU QHWZRUNV LQWKH 8QLWHG 6WDWHV /RRNLQJ DKHDG ,¶P FRQ¿GHQW ZH¶YH charted a course that will keep our networks at the forefront of lifestyle for years to come. EXPAND OUR REACH TO NEW MARKETS AND EMERGING PLATFORMS Leveraging our long-standing commitment to developing and owning all of our own content regardless of platform, our second strategic building block is to expand our reach to new markets and on emerging platforms. Internationally we are reaching new audiences and connecting them with our core brands. At TVN in Poland, ratings improved 4% in 2016. The infusion of our lifestyle formats over the last several quarters has also DOORZHG XV WR FUHDWH HYHQ JUHDWHU YDOXH DW 791 WKDQ EHIRUH 2QH DGGLWLRQDO EHQH¿W IURP WKH DFTXLVLWLRQ RI 791 is the ability to leverage TVN’s production capabilities to create further value in our U.S. networks business. We’re collaborating with the Polish production teams to commission lower-cost seasons of existing shows and short-form digital content and seeing some good results from those synergies. ,Q -DQXDU\ ZH ODXQFKHG +*79 LQ 3RODQG 7KLV ZDV WKH QHWZRUN¶V ¿UVW IXOO ODXQFK LQ (XURSH DQG WKH network’s largest international launch to date. HGTV has already secured a strong position, earning the second highest market share for lifestyle channels in Poland, behind our own TVN Style. TVN makes up the lion’s share of our international business, but the company also experienced growth and increased distribution in other parts of the world. Our strong brands are now available to millions of new audiences in New Zealand, Brazil, Mexico, Europe, the Middle East and Northern Africa, and other prominent markets. Expanding our portfolio of strong networks outside the United States is a critical business objective and one that we will continue to emphasize. In addition to new markets, we’re taking full advantage of newer platforms to reach audiences. Where once we ZHUH D OLQHDU QHWZRUN FRPSDQ\ ZH KDYH WUDQVIRUPHG LQWR D IXOOÀHGJHG OLIHVW\OH FRQWHQW FRPSDQ\ OHYHUDJLQJ video across all platforms. Scripps Networks Interactive is 100% committed to providing the right content to the right audience at the right time. We deliver high-quality, multi-format content that integrates advertising into our storytelling, and digital provides a great opportunity for growth. Additionally, since we own virtually all of our own content, this places us in a unique position among media companies to seize the opportunity provided by new platforms. Consolidated Results* U.S. Networks (Dollars in millions) (Dollars in millions) Total Revenue Total Revenue Segment Profit $2,871 Segment Profit $2,717 $2,466 $2,588 $3,401 $2,258 $3,018 $2,531 $2,665 +6% $2,307 +10% 4-YEAR 4-YEAR REVENUE REVENUE $1,413 CAGR $1,213 $1,268 $1,337 CAGR $1,401 $1,129 $1,041 $1,102 $1,122 $1,246 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 3.

Load more