The E.W. Scripps Co. enjoyed “strong operating results” in Q1 that exceeded its expectations, President/CEO Adam Symson said in comments that came alongside a first quarter earnings report released ahead of a Friday morning earnings call for analysts and shareholders.
Symson cites the company’s “close expense management” for the financial prowess.
A BIG BOUNCE SOUGHT FOR SCRIPPS NETWORKS
In Q1 2024, Local Media revenue improved by 13.1%, moving to $352.84 million from $311.92 million. This helped the segment achieve a 43% profit gain year-over-year, moving to $65.56 million form $45.84 million.
In contrast, Scripps Networks revenue was challenged in the first three months of 2024, declining 3.3% to $209.28 million from $216.47 million. As such, revenue declined by 3.6%, moving to $49.65 million from $51.53 million.
The Scripps Networks segment is comprised of national news outlet Scripps News and Court TV, and entertainment brands ION, Bounce, Defy TV, Grit, ION Mystery and Laff.
Bounce TV is for sale, and so are some non-strategic real estate assets.
This, Symson said, will help in the company’s No. 1 priority of reducing its debt “and leverage to a more comfortable place by year’s end.”
Why did Scripps opt to explore a sale of Bounce? Symson said the company did so “after receiving significant inbound interest from potential strategic buyers.” Bounce has been a Scripps property since 2017. “We know the network plays a special role in Black communities,” Symson said, adding that under Scripps’ stewardship, the network has doubled its revenue and “continues to see unparalleled audience growth.”
A strategic buyer could catalyze that growth, Symson believes.
Consolidated operating revenues were down in Q1 to $561.46 million, from $527.78 million. Three analysts polled by Yahoo! Finance anticipated revenue of $566.43 million in Q1.
That said, Scripps was able to reduce its net loss to $12.75 million (-$0.15 per share) from $31.12 million ($0.37). This beat the Street expectation of -$0.17.
Furthermore, adjusted EBITDA improved to $91.84 million, from $75.9 million.
Looking ahead, select Q2 2024 guidance was offered:
- Local Media revenue is forecast to be up in the low-to-mid-single-digit percent range
- Local Media expenses will likely be up in the low-to-mid-single-digit percent range
- Scripps Networks revenue will be down in the mid-single-digit percent range
- Scripps Networks expenses will be up in the low-single-digit percent range
