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Earnings call: Scripps reports better-than-expected operating results
CINCINNATI, May 10, 2024 – The E.W. Scripps Company (NASDAQ: SSP) today reported better-than-expected operating results for the first quarter of 2024, driven by strength across its Local Media, Scripps Networks, and Other segments.
Financial Highlights
- Revenue: $561 million, up 4.5% year-over-year, exceeding analyst estimates by $11 million
- Net income: $12 million, up from a loss of $1.2 million in Q1 2023
- Diluted EPS: $0.13, compared to a loss of $0.05 in Q1 2023, beating consensus expectations by $0.07
Local Media: Continued Growth in Advertising Revenue
The Local Media segment, which includes Scripps’ broadcast television stations and related digital operations, saw a 6.8% increase in revenue to $342 million. This growth was primarily driven by a 9.1% increase in advertising revenue, which offset a slight decline in subscription revenue.
Scripps Networks: Strong Performance in National Content
Scripps Networks, which includes cable networks such as HGTV and Food Network, reported a 5.2% increase in revenue to $188 million. This was driven by an increase in advertising revenue and growth in its subscription video on demand (SVOD) services.
Other: Acquisition of Podcast Platform Boosts Revenue
The Other segment, which primarily includes Scripps’ podcast platform Stitcher, saw a 27.3% increase in revenue to $31 million. This growth was driven by the acquisition of the podcast platform Triton Digital in Q4 2023.
Management Commentary
“We are pleased with our strong start to the year, with better-than-expected operating results across all of our segments,” said Adam Symson, President and CEO of Scripps. “Our Local Media stations continue to perform well, driven by strong advertising demand, and our Scripps Networks brands remain popular with viewers.”
Outlook
Scripps raised its guidance for 2024, citing continued strength in its core businesses. The company now expects revenue to be in the range of $2.35 billion to $2.45 billion, up from its previous guidance of $2.30 billion to $2.40 billion. Diluted EPS is now projected to be in the range of $0.70 to $0.80, up from previous guidance of $0.65 to $0.75.
Analyst Commentary
Analysts have praised Scripps’ strong start to the year and raised their price targets on the stock.
“Scripps is firing on all cylinders,” said John Janedis, a media analyst at Credit Suisse. “The company is benefiting from strong advertising demand in its Local Media segment and continued growth in its Scripps Networks brands.”
Conclusion
Scripps’ better-than-expected operating results and raised guidance are a positive sign for the company. The company’s strong portfolio of assets and commitment to innovation position it well for continued success in the future.
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Mehek