Increases in retransmission fees (35%), digital (23%) and national advertising (4.6%) were not enough to offset expected declines in political and local advertising. The television division’s segment profit in the first quarter was $16.5 million, compared to $17.9 million in the year-ago period.
QUARTERLY REPORT
Scripps 1Q TV Station Revenue Slips 2.8%
The E.W. Scripps Co. reported first quarter earnings this morning that included revenue from television stations of $96.9 million, down $2.7 million from the first quarter of 2012, a decrease of 2.8%.
Increases in retransmission fees and digital and national advertising were not enough to offset expected declines in political and in local advertising. The first quarter of 2012 included $5.5 million of political and Super Bowl-related advertising.
Advertising revenue broken down by category was:
- Local, down 4.9% to $53.7 million
- National, up 4.6% to $26.9 million
- Political, $300,000 compared to $4.7 million in the 2012 quarter
Digital revenue in the first quarter increased 23% to $3.8 million.
Revenue from retransmission consent agreements increased 35% to $10.4 million, primarily driven by rate increases in existing agreements.
Expenses for the TV station group declined 1.6% to $80.4 million, primarily due to lower syndicated programming costs.
BRAND CONNECTIONS
The television division’s segment profit in the first quarter was $16.5 million, compared to $17.9 million in the year-ago period.
“Following record-setting profit performance in 2012, we launched into 2013 determined to substantially upgrade our digital revenue platforms, launch a series of new local digital products, and rebuild our newspaper business models around bundled subscriptions for digital and print audiences,” said Rich Boehne, president, chairman and CEO.
“In the first quarter, which is our seasonally smallest revenue period, results were complicated by an expected absence of political advertising and difficult-to-predict advertising patterns coming out of 2012. These tough year-over-year revenue comparisons caused by cyclical political advertising will continue through the balance of 2013.
“Audience performance in our television division remains strong, with 10 of our stations expanding their valuable local news ratings in the February period. Two of those stations — in Phoenix and Denver — delivered larger audiences through outstanding journalism that was recognized with coveted Peabody awards.”
For the company as a whole, consolidated revenues were $198.7 million, down 4.1% or $8.5 million. More than half of the decline was due to the near-absence of political advertising revenue in 2013, the company said.
Read the company’s report here.
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