Scripps 3Q TV Revenue Dips 3%

The E.W. Scripps Co. today reported that its television station group revenue in the third quarter of 2015 was $157 million, down 3.1 % from $162 million in the third quarter of 2014.

Advertising revenue broken down by category was:

• Local, flat at $78.8 million
• National, down 2.5% to $35 million
• Political, $4.3 million in 2015 compared to $21.3 million in 2014

Retransmission revenues grew 52% to $36.3 million.

Total segment expenses increased 9.2% to $126 million, driven by increases in programming fees due to the renegotiation of the ABC affiliation agreements for 10 of the company’s stations in December 2014 and its CBS affiliation agreement in Nashville in July.

Third-quarter segment profit in the television division was $31.7 million, compared to $47.2 million in the year-ago quarter.

The company’s digital group revenues were $10.9 million, up $3.7 million from the prior period. Expenses for the digital group were $14.5 million, an increase of $1.7 million from the prior-year period.

For the company as a whole, revenues from continuing operations were $190 million, up $67 million from the prior-year’s reported results. Operating revenues increased $67 million, or 54%, to $190 million, compared to the third quarter of 2014. The increase was primarily a result of the acquisition of the television and radio stations from Journal Communications as well as increases in retransmission revenue. Revenue from acquired operations accounted for approximately $68 million of operating revenues in the quarter.

Commenting on the second quarter results, Scripps Chairman-President-CEO Rich Boehne said: “Third-quarter performance in our core broadcast television business was aided by a comeback in automotive advertising and a leap in retransmission fees. The increase in retransmission revenue alone offset the decline in political advertising revenue in the off-cycle year.

“In our TV markets we’re setting the stage for 2016, when increases in local news ratings, a 50 percent increase in retransmission fees, and presidential election spending across an expanded footprint of potential swing states should come together for a strong performance.

“Also in the third quarter, we expanded our reach into the fast-growing over-the-top media marketplace with the accelerated rollout of our OTT video news service Newsy. This service aimed at millennial news audiences now also includes OTT distribution on Apple TV, Comcast’s Watchable, Roku, Amazon’s Fire TV, Google Chromecast, PlutoTV and Xumo, with more to come shortly. Our expanded ambition for Newsy, changes in the marketplace, and our commitment to invest in this strategy led us to a pivot in the business model.

“On the audio side of our over-the-top strategy, we purchased Midroll, a leading podcast producer and advertising network, and then launched its subscription-based app, Howl, to strong response. Not only is Midroll a growing content play for mobile-media consumers, it’s also designed to be an alternative advertising model that largely defies ad blocking.

“While working to build value through our current and evolving businesses, we also used our strong balance sheet and cash flow to repurchase shares. We expect our overall financial position to further strengthen as we move through the presidential election year and top our four-year business cycle.”

Read the company’s report here.