E.W. Scripps Q3 Earnings Call Highlights

Key Points

• Record political advertising drove Local Media growth: Full-year political revenue reached $284 million, 44% above Scripps’ prior midterm record, while third-quarter Local Media revenue rose 19% to $373 million.
• Scripps plans to use election cash to cut debt: The company expects to repay at least $150 million in the fourth quarter. Its transformation plan targets $125 million to $150 million in bottom-line benefits, following workforce reductions affecting about 850 employees this year.
• Networks faced revenue pressure despite streaming gains: Scripps Networks revenue fell 11% in the third quarter, but connected-TV revenue grew 37%; the company expects Networks revenue to decline by a high-single-digit percentage in the fourth quarter.

E.W. Scripps NASDAQ: SSP reported a third-quarter profit as record midterm political advertising boosted its local television business, and executives said they plan to use election-related cash to reduce debt.

The company recorded $284 million in full-year Local Media political advertising revenue, 44% above its previous midterm record of $198 million in 2022. Chief Financial Officer Jason Combs said the total exceeded guidance provided the previous week.

Scripps also continued a transformation plan that has reduced its workforce by nearly 20% this year. Executives said savings should begin appearing in fourth-quarter results, while most of the financial impact is expected next year.

Political Advertising Lifts Local Media

Third-quarter Local Media revenue rose 19% from a year earlier to $373 million on a same-station basis. The division generated $81 million in political advertising revenue, a third-quarter midterm record for the company.

Core advertising revenue fell 13%, which Combs attributed to displacement by political ads. Distribution revenue was flat at $178 million, while segment profit rose to $118 million from $50 million a year earlier. The same-station comparison adjusts for two television stations Scripps sold and its addition of a Lexington ABC affiliate.

For the fourth quarter, Scripps expects Local Media revenue to rise by a percentage in the low- to mid-40s on the same basis. It expects core advertising to decline by a high-single-digit percentage, primarily because of political advertising displacement, and distribution revenue to rise about 4% following contract renewals.

President and CEO Adam Symson said the company benefited from competitive races in markets including Ohio and Michigan. He also said sports programming created additional advertising inventory, citing the opening games of the Detroit Pistons’ season as an opportunity to sell ads at premium political rates.

Combs said it was early to assess post-election core advertising trends, although the company was pleased with pacing. He said November core advertising was pacing about 30% above October as political displacement eased.

Networks Revenue Falls Despite Streaming Growth

Scripps Networks revenue declined 11% to $173 million in the third quarter on a basis adjusted for the February sale of Court TV. Segment profit was $33 million, and expenses rose 0.9% to $140 million. Combs said expenses would have declined excluding the first-year impact of a new WNBA contract.

Connected TV revenue in the division grew 37% during the quarter. For the full year, Scripps expects at least $155 million in networks connected TV revenue, up 36% from 2025.

Combs said a Nielsen measurement change earlier in the year weighed on general-market advertising performance for much of the third quarter. Symson said a revised framework introduced Sept. 1 better reflected the company’s audience, including antenna households. He said viewing among adults ages 25 to 54 rose 7% at ION in September compared with the preceding two months, while viewing across Scripps Networks rose an average of 23% in that demographic.

For the fourth quarter, Scripps expects Networks revenue to decline by a high-single-digit percentage, primarily because of weakness in direct-response advertising. Combs linked that market’s challenges to consumer confidence and household spending pressures.

Job Cuts and Debt Reduction

Scripps reported third-quarter income attributable to shareholders of $21 million, or 21 cents per share, compared with a loss of $49 million, or 55 cents per share, a year earlier. The latest quarter included $18.8 million in restructuring costs, which reduced earnings per share by 14 cents. A preferred stock dividend reduced earnings per share by another 17 cents.

The company expects its transformation plan to deliver $125 million to $150 million in bottom-line benefit through a combination of expense reductions and revenue initiatives. Combs said Scripps remains on track to achieve $100 million in annualized savings by year-end; the full transformation target is not solely an expense-reduction figure.

Symson said Scripps recently notified 431 employees that their roles were being eliminated, bringing the number affected in 2026 to approximately 850. He said the largest employee reductions were behind the company, although other initiatives in the three-year transformation could affect headcount.

At quarter-end, Scripps had $83.4 million in cash and $2.2 billion in net debt, as defined by its credit agreement. Combs said the company expects to pay down at least $150 million of debt in the fourth quarter, with cash directed toward its B-2 term loan due in 2028.

Combs said Scripps also has approximately $30 million of capacity to repurchase bonds in the open market, but that is not its plan as it exits the current quarter. The company will consider its options as it assesses cash flow and debt priorities next year, he said.

About E.W. Scripps (NASDAQ:SSP)

The E.W. Scripps Company NASDAQ: SSP is an American media company that operates local television stations, national news services and digital media businesses. Its local media operations provide broadcast news, weather, sports and community programming, while its national offerings include Scripps News and Court TV.

Scripps distributes content through over-the-air television, digital platforms and streaming services. The company also operates ION, a national broadcast network known for entertainment programming, as well as other television and digital brands.

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