Results for the three-month period ended June 30 reflect continued strong growth in affiliate fee revenue offset by modestly lower advertising revenue for the company's lifestyle television networks and the continuing effects of a repositioning of Shopzilla, the company's online comparison shopping business.

Consolidated revenue for the quarter decreased 3.7 percent year over year to $391 million with total revenue from the company's Lifestyle Media business segment up slightly for the period compared with last year.

Consolidated second quarter expenses decreased 1.1 percent year over year.

Consolidated second quarter net income attributable to Scripps Networks Interactive was $79.5 million, or 48 cents per share compared with $53.3 million, or 33 cents, in the second quarter 2008. Net income reported for the second quarter 2008 included a charge of $26.4 million, or 16 cents per share, that was related to the company's spin-off from The E. W. Scripps Company in July of last year. Because the company was not operated independently from its former parent before July 1, 2008, prior-year net income for the period included an estimate of corporate expenses.

Consolidated segment profit for the company during the second quarter 2009 was $166 million compared with $179 million in the prior-year period. (See Note 2 for a definition of segment profit). The company generated $82.4 million in cash from continuing operating activities and $42.3 million in free cash flow during the three-month period.

From the company's Lifestyle Media business segment, which includes HGTV and Food Network, total revenue for the period was $351 million, up slightly from $349 million in the prior-year quarter. Affiliate fee revenue increased 15 percent year over year on improved rates for HGTV and expanding distribution of all of the company's television networks. Other television networks operated by the company include DIY Network, Fine Living Network (FLN) and Great American Country (GAC). For the full year, the company expects affiliate fee revenue to increase around 15 percent.

Advertising revenue from the Lifestyle Media segment decreased 3.8 percent in the second quarter. The rate of decline moderated sequentially from the previous quarter, reflecting improving trends in the overall advertising marketplace.

The company continued to invest in new, original programming during the period to build viewership and increase audience market share at all of its networks. Total Lifestyle Media expenses for the quarter increased 2.1 percent. The company expects full-year programming expenses to increase by 9 to 11 percent. Non-programming costs are expected to be flat to down slightly for the year.

Lifestyle Media segment profit during the second quarter was $172 million compared with $175 million during the prior year.

Revenue from the company's Interactive Services business segment, which includes online comparison shopping services Shopzilla and BizRate, was $40.8 million during the second quarter compared with $57.2 million during the same period in 2008. Initiatives under way to reposition and differentiate Shopzilla's products are starting to show positive trends. Most notably, leads to Shopzilla merchant partners in the quarter grew 14 percent year over year. This qualified lead volume metric is important because it measures the value Shopzilla is delivering to its direct merchant partners, as well as the level of engagement that consumers are having with the core content on its branded comparison shopping Web sites at BizRate.com and Shopzilla.com.

In addition to the revenue tradeoffs associated with the competitive repositioning, Shopzilla's results were held back by continued weak consumer demand for retail products and the effects of a less-favorable sponsored-link revenue sharing agreement with Google. uSwitch results are being reported as discontinued operations. The company announced during the quarter that it is seeking a buyer for the energy-switching subsidiary.

Interactive Services expenses declined 24 percent during the second quarter as the company continued to scale the business to match market conditions.

Interactive Services segment profit was $7.3 million in the second quarter compared with $12.9 million during the same period a year earlier. The company expects Shopzilla segment profit to be above $30 million for the full year.

"The resilience and popularity of our audience-engaging franchises led to a solid operating performance in the second quarter," said Kenneth W. Lowe, chairman, president and chief executive officer of Scripps Networks Interactive. "We continued to demonstrate our dominance in the core food and shelter content categories, which led to total revenue growth in our Lifestyle Media business segment. In the second quarter, robust affiliate fee growth offset a modest decline in advertising for our core television networks. Food Network and DIY Network, in particular, performed extremely well during the quarter, delivering all-time highs in primetime audiences. HGTV delivered a strong audience as well, as creative programming enhancements we've made clearly are resonating with shelter content fans.

"In our Interactive Services segment, Shopzilla achieved another profitable quarter. We're beginning to see positive results from the strategic repositioning of the business that we initiated to make it more competitive and sustainable. We're making progress enhancing customer satisfaction, expanding comprehensive product search content, and delivering greater value to merchants who partner with us for leads."

Here are second-quarter results by operating segment:

Lifestyle Media

Lifestyle Media affiliate fee revenue grew 15 percent to $80.0 million. Advertising revenue was $261 million, down 3.8 percent.

Total expenses increased 2.1 percent. Programming expenses increased 9.1 percent to $78.1 million. Non-programming costs decreased 2.7 percent to $100 million.

Lifestyle Media segment profit was $172 million compared with $175 million in the prior-year period.

Operating revenue at HGTV was $164 million, up 0.4 percent. HGTV now reaches 98 million subscribers compared with about 95 million at the end of the second quarter 2008.

Food Network operating revenue was $128 million, up 1.7 percent. Food Network reaches 98 million subscribers, up from about 96 million at the end of the second quarter 2008.

Revenue at DIY Network was up 5.6 percent to $18.1 million. DIY can be seen in about 51 million households, up from about 48 million households a year ago.

Fine Living Network (FLN) revenue was $11.0 million, down 23 percent, reflecting lower-than-anticipated audience levels since becoming a rated network at the beginning of the year. Fine Living reaches 55 million households vs. 50 million households last year.

Revenue at Great American Country (GAC) increased 4.3 percent to $6.7 million. Great American Country can be seen in about 56 million homes compared with about 54 million homes a year ago.

Revenue from the Lifestyle Media segment's interactive businesses (SN Digital) was $20.8 million, down 0.9 percent.

Interactive Services

Interactive Services revenue was $40.8 million compared with $57.2 million.

Segment expenses decreased 24 percent to $33.5 million.

Segment profit was $7.3 million compared with $12.9 million.

Conference call

The senior management team of Scripps Networks Interactive will discuss the company's second quarter results during a telephone conference call at 10 a.m. EDT today. Scripps Networks Interactive will offer a live webcast of the conference call. To access the webcast, visit www.scrippsnetworksinteractive.com and follow the Investor Relations link at the top of the page. The webcast link can be found next to the microphone icon.

To access the conference call by telephone, dial 1-800-230-1092 (U.S.) or 612-288-0340 (international) approximately ten minutes before the start of the call. Callers will need the name of the call, "second quarter earnings report," to be granted access. Callers also will be asked to provide their name and company affiliation. The media and general public are granted access to the conference call on a listen-only basis.

A replay line will be open from 12 p.m. EDT Aug. 6 until 11:59 p.m. EDT Aug. 13. The domestic number to access the replay is 1-800-475-6701 and the international number is 1-320-365-3844. The access code for both numbers is 996741. A replay of the conference call will also be available online. To access the audio replay, visit www.scrippsnetworksinteractive.com approximately four hours after the call, choose Investor Relations, then follow the Audio Archives link on the left side of the page.

Forward-looking statements

This press release contains certain forward-looking statements related to the company's businesses that are based on management's current expectations. Forward-looking statements are subject to certain risks, trends and uncertainties, including changes in advertising demand and other economic conditions that could cause actual results to differ materially from the expectations expressed in forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. The company's written policy on forward-looking statements can be found on page F-3 of its 2008 Form 10-K filed with the Securities and Exchange Commission.

The company undertakes no obligation to publicly update any forward-looking statements to reflect events or circumstances after the date the statement is made.

About Scripps Networks Interactive

Scripps Networks Interactive Inc. is one of the leading developers of lifestyle-oriented content for television and the Internet, where on-air programming is complemented with online video, social media areas and e-commerce components on companion Web sites and broadband vertical channels. The company's media portfolio includes: Lifestyle Media, with popular lifestyle television and Internet brands HGTV, Food Network, DIY Network, Fine Living Network (FLN) and country music network Great American Country (GAC); and Interactive Services, with leading online search and comparison shopping services BizRate and Shopzilla.

  SCRIPPS NETWORKS INTERACTIVE, INC.