Scripps 4Q Station Revenue Up 24%

E.W. Scripps Co. announced fourth quarter results this morning, including Local Media (its TV stations and local brands on all platforms) revenue of $433 million, up 24% from the prior-year quarter.

• Core advertising revenue decreased 11% to $164 million.
• Political advertising revenue was $106 million, compared to $11 million in the prior-year quarter.
• Distribution (retransmission) revenue increased 5.4% to $160 million.

Segment expenses increased 4.9%, driven by network affiliation fees and the impact of Scripps employees returning to working in its station buildings.

Segment profit was $152 million, compared to $82.2 million in the year-ago quarter.

The Scripps Networks division, which includes its nine national networks, reported revenue of $248 million, down 9.2% from the prior-year quarter, reflecting “softness within the national advertising marketplace as a result of macroeconomic challenges.”

Segment expenses were $158 million, in line with expenses in 4Q 2022.

Segment profit was $80 million, compared to $106 million a year earlier.

For the company as a whole, total 4Q revenue was $681 million, an increase of 9.4%, or $58.7 million, from the prior-year quarter due to higher political and distribution revenue in the Local Media division.

Costs and expenses for segments, shared services and corporate were $477 million, up from $454 million in the year-ago quarter.

Income attributable to the shareholders of Scripps was $73 million or 84 cents per share

Commenting on the quarter’s results, Scripps President-CEO Adam Symson said: “Since the beginning of this year, Scripps has been engaged in examining the best ways to structure our company so that we are well-positioned to capture the opportunities we see emerging in our industry. We see those in three key growth areas: the content categories of news, sports and entertainment; TV distribution platforms; and the burgeoning marketplace enabled by ATSC 3.0.

“The reorganization work will include the centralization of some services and the consolidation of layers of management across the company. We expect to realize savings of at least $40 million. Our end goal, however, is not just a more efficient structure but a smarter one, designed to use the breadth of our assets to accelerate the company’s growth.

“As a precursor to our reorganization work, we launched the Scripps Sports division, led by Brian Lawlor, to serve sports teams and leagues left isolated from their fans by the fall-out connected to cord cutting. Through our local station portfolio and the ION network, we have both local market depth and unparalleled national reach over the air, on pay TV and across the important digital platforms — everywhere audiences watch television. We are working with leagues and teams that recognize the way a partnership with Scripps will expand their reach and strengthen their connection with the passionate fans who are so crucial to them.

“As we all bear witness to this country’s ongoing economic uncertainty and its impact on consumer spending, we see even greater opportunity for Scripps through free TV. It is a growth lever that differentiates our story from peers. Given our sizable share of all OTA viewing, we are creating shareholder value by promoting the use of digital antennas and other new ways of accessing our high-quality television programming for free. In addition, we are working with the industry to develop business models made possible through ATSC 3.0 technology. The most promising of these is datacasting – a marketplace quickly moving from the horizon to the foreground, with tremendous opportunity for those who hold broadcast spectrum.”

Read the company’s report here.