Scripps kicks off $1bn share buy-back

US broadcast group Scripps Networks Interactive is buying back US$1bn worth of its own shares, in a move it says signals the board’s growing confidence in its lifestyle channels.

Scripps, which counts HGTV, Food Network, Travel Channel, DIY Network, Cooking Channel and country music network Great American Country among its channels, announced the step today.

Chairman Kenneth Lowe said the agreement demonstrated the company’s “faith in the financial strength of our lifestyle media business,” adding that it would give the firm the “financial flexibility” to invest in long-term growth.

As part of the deal, Scripps’ major shareholder The Edward W Scripps Trust will receive about US$300m for 6.4 million shares.

The remaining US$700m will be spent buying back Class A common shares originally sold on the open market or through private transactions.

The Trust remains the single largest shareholder in Scripps, with 26% of its shares, and has indicated it has no further plans to reduce the size of its stake.

Last month, the company reported a 39% rise in net income for the first quarter of 2011, thanks to strong advertising growth. Scripps has been rolling out its networks around the world over the past year, with the emphasis on Food Network.

The company remains keen to crack markets such as India, where an anticipated joint venture with local broadcaster NDTV Group fell through last year.