Scripps 4Q Adjusted Station Rev Down 24%

E.W. Scripps announced fourth quarter results on Friday morning, including Local Media (its TV stations and local brands on all platforms) revenue of $351 million on an adjusted-combined (same-station) basis, down 24% from the prior-year quarter.

Core advertising rose 8.1% to $183 million.

Political advertising revenue was $11.1 million, compared to $137 million in the prior-year quarter, which included a presidential election race.

Retransmission revenue increased 0.7% to $152 million.

Total segment expenses on an adjusted combined basis increased 3.9%, driven by network affiliation fees.

Segment profit was $82.2 million, compared to $202 million in the year-ago quarter.

The Scripps Networks division, which includes its nine national networks, reported revenue of $273 million, up $33.3 million or 14% from a year ago. Segment expenses increased 14%. Segment profit was $106 million, compared to $93.2 million a year earlier.

For the company as a whole, total 4Q revenue was $622 million, an increase of 5.3%, or $31.2 million, from the prior-year quarter, reflecting the impact of the company’s Ion acquisition that closed on Jan. 7.

Costs and expenses for segments, shared services and corporate were $427 million, up from $350 million in the year-ago quarter, reflecting the impact of the Ion acquisition and higher affiliation fees for both its broadcast television stations and national networks.

Income from continuing operations attributable to the shareholders of Scripps was $45.8 million or 49 cents per share.

Pre-tax costs for the quarter included acquisition and related integration costs of $251,000 and $1.9 million of restructuring costs. The company had a $32.6 million gain on the sale of its Denver KMGH-TV building. These items increased income from continuing operations by $22.9 million, net of taxes, or 25 cents per share. In the prior-year quarter, income from continuing operations was $64 million or 76 cents per share.

Pre-tax costs for the prior-year quarter included $10.9 million of acquisition and related integration costs that decreased income by $8.2 million, net of taxes, or 10 cents per share.

Commenting on the quarter’s results, Scripps President-CEO Adam Symson said: “Scripps shareholders have much to celebrate in the company’s fourth-quarter and full-year 2021 financial results, especially our delivery of record non-election year free cash flow of $280 million during a period when our country’s economy was emerging from a global pandemic.

“I am extremely proud of Scripps’ local sales teams, which were working diligently — and remotely — last year to win significant new-to-television advertising business, expanding advertisers’ audience reach into our local connected TV products and capitalizing on the emergence of the sports betting category.

“I am equally proud of our Scripps Networks team — barely a year old — which has come together to build a powerfully profitable operation that is laser-focused on serving the nation’s over-the-air and connected TV media consumers. This fall, our five Nielsen-rated entertainment networks were the only ones out of 10 comparable portfolios to grow audience year over year. You can clearly see the results of that audience growth in the division’s strong Q4 revenue performance.

“Scripps Networks already capture 25% of viewing in the expanding OTA marketplace, and as we move through 2022, we are devoting ourselves to continued viewership and revenue growth. Among our plans is a marketing campaign on how to watch over-the-air TV and the wide range of quality content you find on it. This campaign is part of Scripps’ effort to carve out our own valuable corner of the television ecosystem: free, ad-supported platforms such as OTA, FAST and AVOD that serve subscription-weary Americans.”

Read the company’s report here.