Revenue Rises at Crown Media

A rise in advertising sales at Crown Media Holdings Inc. resulted in an improvement in revenue for the third quarter. The Studio City owner of Hallmark Channel and Hallmark Movies & Mysteries reported on Monday net income of $8.7 million (2 cents a share) for the quarter ending Sept. 30, compared with $14.9 million (4 cents) in the same period a year earlier. Revenue increased 14 percent to $106 million. No analysts follow the company. Advertising revenue increased by 17 percent to $83.6 million for the quarter due to improved ratings on Hallmark Movies & Mysteries and subscriber and audience growth at both channels. While revenue rose, so did programming costs and employee costs, both by 18 percent. Crown Media is controlled by Hallmark Cards Inc. of Kansas City, Mo., and a Hallmark subsidiary. Minority investors hold less than 10 percent of the shares. Chief Executive Bill Abbott said the spike in advertising and subscribers as well as debt refinancing with a lower interest rate were highlights of the quarter. “This momentum, along with our robust holiday slate, should pave the way to a strong fourth quarter,” Abbott said in a prepared statement. Shares closed down 5 cents, or nearly 1 percent, to $5.74 on the Nasdaq.