Crown Media 1Q profit down despite revenue gain
STUDIO CITY, Calif.—Crown Media Holdings Inc., the operator of Hallmark Channel and Hallmark Movie Channel, said Thursday that its first-quarter net income fell because of a year-ago tax benefit, but revenue grew.
Net income in the three months to March 31 fell to $12.3 million, or 3 cents per share, from $47.5 million, or 13 cents per share, a year ago.
The year-ago period included a tax benefit of $43.8 million, while in the most recent quarter, the company set aside $7.3 million to pay taxes.
Revenue grew 14 percent to $83.8 million from $73.6 million. Advertising revenue grew 15 percent to $63.9 million because of bigger audiences and higher rates. Revenue from subscriber fees rose 12 percent to $19.8 million.
More than 90 percent of the company's shares are controlled by Donald Hall Jr., the chief executive of privately-held Hallmark Cards Inc.
Shares of the Studio City, Calif., company were down a penny at $1.52 in afternoon trading Thursday.