Scripps 3Q Core Spot Revenue Up 7.5%

The E.W. Scripps Co. today reported third quarter television station revenue down 20.8% compared to the same quarter last year due to the dearth of political advertising, which fell from $33.9 million to $1 million.

However, core spot revenue (excluding political) rose 7.5% quarter-over-quarter, with national spot ($27.4 million) up 5.4% and local ($54.6 million) up 5%.

The TV station revenue was also boosted by a 40% increase in retransmission fees from cable and satellite operators to $10.4 million. In addition, digital revenue grew 6.1% to $44.3 million.

Total television segment expenses decreased 3.7%, primarily related to reductions in incentive compensation, lower syndicated programming costs and lower marketing and promotion costs. The prior-year period included marketing and promotion costs to support the debut of Let’s Ask America and The List.

“In television we saw, in addition to the rise in retransmission fees, an increase in local, national and digital advertising, despite an uncertain economic environment,” said Rich Boehne, Scripps chairman, president and CEO. 

“The television group also has closely managed expenses, helped by the success of our programming strategy. Our game show Let’s Ask America is now airing in all 13 Scripps TV markets, and this week we announced a deal for MGM to begin syndicating the show nationwide. Our second original and wholly owned show, The List, is seeing strong ratings growth, and the success of both shows, along with that of our partially owned show, RightThisMinute, have decreased programming expenses and lessened our reliance on syndicated shows.

“Our push to win in the local digital marketplace continues unabated. By year end we expect to have hired more than 100 people whose jobs are solely focused on selling and managing advertising campaigns for clients in our local markets. Our next generation of apps and site improvements continue to roll out across the company, and we’re seeing audience growth and engagement as well as increases in unique visitors, video views and product downloads.”

For the company as a whole, which also includes newspapers, consolidated revenue was $190 million, a decrease of 14%, or $30.1 million, from the prior-year quarter. In this off-cycle period, political advertising revenues decreased $32.9 million.

The company reported a loss from operations before income taxes of $11.9 million in the third quarter of 2013 compared to income from operations before income taxes of $14.2 million in the prior-year period.

The net loss for the third quarter of 2013 was $8.9 million, or 16 cents per share, compared to net income of $12 million, or 21 cents per share, in the third quarter of 2012. The tax expense for the 2012 quarter includes $3.7 million, or 7 cents per share, in favorable adjustments to the reserve for prior-year income taxes.

Read the company’s report here.