Scripps 2Q Adjusted Station Rev Grows 22%

E.W. Scripps announced second quarter results on Friday morning, including Local Media (its TV stations and local brands on all platforms) revenue of $325 million on an adjusted-combined (same-station) basis, up $58.3 million or 22% from the prior-year quarter.

Core advertising rose 48% to $161 million. Weakened economic conditions due to the COVID-19 pandemic slowed advertiser spending in 2020. The top five core advertising categories were up well into double digits on a year-over-year basis, including a 623% increase in travel and leisure driven by spending for sports betting.

Political advertising revenue was $13.1 million in the second quarter of 2020, compared to $3.2 million in the current period.

Retransmission revenue increased 11%. Scripps renegotiated three large retransmission consent contracts in 2020.

Total segment expenses on an adjusted combined basis increased 13%.

Segment profit was $64.6 million, compared to $36.6 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 $239 million, up $45.4 million or 23% from the prior-year quarter.

Total segment expenses increased 7.4%.

Segment profit was $107 million, compared to $71 million in the year-ago quarter.

For the company as a whole, total second-quarter company revenue was $565 million, an increase of 57% or $206 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 $413 million, up from $329 million in the year-ago quarter, reflecting the impact of the Ion acquisition and higher affiliation fees for both our broadcast television stations and national networks.

Loss from continuing operations attributable to the shareholders of Scripps was $11.4 million or 14 cents per share. The current-year quarter included a $13.8 million loss on extinguishment of debt from the redemption of our 2025 senior notes, a $31.9 million non-cash adjustment due to the increase in the fair value of the outstanding common stock warrant liability as our stock price rose, acquisition and related integration costs of $6.7 million and $514,000 of restructuring costs. These items decreased income from continuing operations by $47.6 million, net of taxes, or 58 cents per share. In the prior-year quarter, loss from continuing operations was $17.5 million or 22 cents per share.

Commenting on the quarter’s results, Scripps President-CEO Adam Symson said: “Scripps’ second-quarter results for our Local Media and Scripps Networks divisions have surpassed expectations for both revenue and segment profit. Their performance, combined with expectations for a strong second half of the year, have allowed us to raise our full-year free cash flow guidance to $240 million-$260 million.

“In Local Media, we are delivering core advertising revenue results that reflect very strong sales execution, especially focused on new-to television ad dollars, in the midst of the rebound of the advertising marketplace.

“In our Scripps Networks division, we outpaced our revenue expectations, driven by continued strength in direct response advertising. In addition, our first upfront presentations as a nine-network division exceeded our expectations, with tremendous growth compared to past ION and Katz upfronts, substantial increases in advertising rates and a significant expansion of our advertiser accounts. National advertisers are embracing our powerful networks portfolio’s audience reach.

“Our second-quarter results illustrate the benefits of the company’s strategic approach in recent years to both longer-term transformative change and near-term operating-performance excellence. Our improved financial profile today positions 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.