Key Financial Data
- Q1 Total revenue: $516.9 million (-1.4% year-over)
- Operating income: $24.8 million (-10%)
- Net income: -$1.8 million (improvement from -$3.5 million)
- Local media revenue: $341.6 million (+5%)
- Local media core advertising: $139.8 million (+6%)
- Local media political advertising: $9 million (+175%)
- Local media distribution revenue: $189.9 million (+1.5%)
- Scripps Networks revenue: $176 million (-11.1%)
- Total debt: $2.6 billion
- Read more Q1 media earnings coverage
The E.W. Scripps Company reported a smaller first quarter (Q1) loss on Thursday, as stronger results from its local television stations helped offset a continued revenue decline at its national networks business.
During the first three months of the year, Scripps earned total revenue of $516.9 million, down 1.4 percent from $524.4 million during the same period last year. Scripps posted a net loss attributable to shareholders of $18 million, or 20 cents per share, compared with a loss of $18.8 million, or 22 cents per share, in the year-ago quarter.
The quarter included a $30 million gain tied to the sales of Court TV and two local television stations — WFTX (Channel 36, Fox) in Fort Myers and WRTV (Channel 6, ABC) in Indianapolis. Scripps said those transactions reduced its shareholder loss by 25 cents per share. The company ended the quarter with $83.7 million in cash and $2.6 billion in total debt, while net leverage stood at 3.9 times under its credit agreement calculations
Scripps CEO Adam Symson said the company is entering the second quarter with “real momentum,” pointing to its cost-cutting and revenue-growth plan, sports strategy and lower leverage ratio. Symson said Scripps remains on track to improve company EBITDA by at least 30 percent over the next two years through more than 1,000 identified initiatives involving cost savings, revenue growth, artificial intelligence, automation and other technology.
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Local media revenue rose 5 percent to $341.6 million, helped by core advertising, political spending and distribution revenue. Core advertising increased 5.8 percent to $139.8 million, while political advertising nearly tripled to $9 million as the midterm election cycle began. Distribution revenue increased 1.5 percent to $189.9 million, while segment profit rose 33.7 percent to $46.7 million.
On an adjusted combined basis, which accounts for recent station transactions, Local Media revenue rose 5.8 percent to $330.5 million. The company said core advertising was up 7 percent, driven in part by local sports rights deals with four NHL teams and broadcasts tied to the Winter Olympics and Super Bowl.
Scripps Networks remained under pressure during Q1: Revenue declined 11.1 percent to $176 million, while segment profit fell 27.8 percent to $46.3 million. On an adjusted combined basis, networks revenue was down 9.5 percent to $173.6 million.
Sports continues to be a growth area for sports, with the company citing its ongoing WNBA on Ion coverage, women’s soccer, hockey, volleyball, track, rodeo and college basketball.
Scripps also launched a new free, ad-supported streaming TV (FAST) channel called the Scripps Sports Network that serves as a complement to Ion, simulcasting national sports programming from the network and acting as both a spillover and replay channel for the company’s premium sports telecasts.
Scripps will hold its Q1 earnings conference call on Friday.
