Crown Media Reverses Loss in Quarter

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Crown Media Holdings Inc. said Wednesday it moved from a loss to a profit in its fourth quarter as it cut costs and brought in more subscriber revenue from its Hallmark family of cable channels.

After the markets closed, the Studio City media company reported net income of $1.3 million (1 cent per share), compared with a net loss of $37.3 million (-37 cents) a year ago. Revenue rose 8 percent to $75.2 million.

Crown said subscriber revenue more than doubled to $14.5 million as paying subscribers increased and the company renewed at higher rates its contracts with cable and satellite TV providers. Even so, advertising revenue fell 4 percent to $60.4 million, which the company blamed on the poor economy.

“Right now, Americans are looking for predictability in very unpredictable times. Hallmark Channel and Hallmark Movie Channel offer the kind of poignant and uplifting programming that Americans want and need and certainly tuned into on our channels in record numbers during the holidays,” said Chief Executive Henry Schleiff in a statement. “I am confident that our unique appeal and sound operating structure will help us navigate successfully through the uncertain times ahead.”

For the full fiscal year, Crown reported an 87 percent smaller net loss of $37.2 million (-36 cents) compared with 2007. Revenue rose 20 percent to $282 million.

Before the announcement, Crown Media shares closed up 10 cents, or 6 percent, to $1.71 on the Nasdaq.