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Financial reports reveal mixed results for entertainment industry

Companies that make movies and television shows reported mixed results for the

An analysis of the second quarter financial reports of various entertainment companies by The Associated Press found a mixed bag for these organizations. Many of the companies that own and operate TV or movie studios are also involved in other industries, but rely on entertainment for a significant portion of their revenue and profits.

Revenue at most television studios was up during the second quarter of 2012, the AP reported. The biggest winner of the quarter was Scripps Networks Interactive, which operates channels like The Food Network and HGTV. Greater ad sales helped drive an 84 percent increase in net profits.

Increased ad sales appeared to be the primary driver in revenue increases for a number of television studios - Discovery Communications, Walt Disney and News Corp. all saw increased revenue. A few companies, including Viacom, suffered a decline in ad sales, which contributed to overall losses. Comcast, which owns NBC, reported losses despite the success of the Olympics, which began at the very end of the quarter.

While the news was generally favorable for television studios, movie houses were much less fortunate during the second quarter, the AP found. Of the eight companies featured in the report, all saw losses during Q2.

Perhaps the biggest losses were seen at DreamWorks Animation SKG, which saw revenue fall 25 percent and net income fall 63 percent, despite the success of its film "Madagascar 3: Europe's Most Wanted," which brought in roughly half a billion dollars in ticket sales world wide.

Time Warner, which saw a 4 percent growth in its TV properties, experienced an 8 percent decline at its Warner Bros. studios compared with last year. Strong releases in the summer of 2011 drove massive profits for the movie house, and one of this year's biggest features, "The Dark Knight Rises," opened after the second quarter ended, the source said.

Ad revenue
Across the globe, ad spending has risen, according to a recent analysis from Nielsen. During the first part of 2012, overall ad spending on radio, TV, internet, print and cinema climbed 3.1 percent. Internet advertising saw the biggest boom with 12.1 percent growth during the first quarter, Australia's MediaBizNet reported. TV advertising in North America grew by 4 percent during the first quarter of 2012, which is in line with the trend most companies reported in their second quarter results.