Scripps 3Q Adjusted Station Rev Down 15%

E.W. Scripps announced third quarter results on Friday morning, including Local Media (its TV stations and local brands on all platforms) revenue of $331 million on an adjusted-combined (same-station) basis, down $60.1 million or 15% from the prior-year quarter.

Core advertising rose 18% to $167 million, due to significant new business, demand for its connected TV advertising products and the rise of the sports betting category.

Political advertising revenue was $96.4 million in the third quarter of 2020, which included a presidential election race, compared to $7.1 million in the current period.

Retransmission revenue increased 1.5%.

Total segment expenses on an adjusted combined basis increased 9.7%.

Segment profit was $65.4 million, compared to $149 million in the year-ago quarter.

The Scripps Networks division (formerly National Media), which now combines Ion with Court TV, Newsy, Bounce, Grit, Laff and Court TV Mystery), reported adjusted revenue of $227 million, up $34.3 million or 18% from the prior-year quarter.

Total segment expenses increased 11%.

Segment profit was $83.3 million, compared to $63.6 million in the year-ago quarter.

For the company as a whole, total third quarter company revenue was $555 million, an increase of 13%, or $62 million, from the prior-year quarter, reflecting the impact of the 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: “Investors should take note of the growing financial value of our differentiated strategy, focused on leadership in the free television marketplace. In a year without a major national election season, we again raised our free cash flow guidance range for this year — from $240 million to $260 million up to $255 million to $265 million — driven by the strength of our local and national brands, sales execution and the rebounding advertising marketplace.

“We’ve made fast work of the transformation of the company after the Ion acquisition and expanded our portfolio, now with nine national networks that reach more than 90% of the nation’s 122 million TV households — most recently with the relaunch of Newsy over the air in addition to being on all major connected TV platforms.

“At the same time, Scripps is focused on growing scale in the connected TV marketplace through an aggressive launch schedule for most of our networks on CTV platforms. All 40 of our local news brands are already available through the major CTV platforms, garnering material new revenue that helped us beat Wall Street’s core advertising revenue estimates in the third quarter.

“We continue to place a high priority on our people by fostering inclusive, respectful and rewarding workplaces that drive a high-performance culture and engender employee loyalty in a challenging employee economy. This and all of our strategies position us well for ongoing business growth, future free cash flow generation and the ability to continue reducing our debt.”

Read the company’s report here.