The E.W. Scripps Company (SSP) Q2 2024 earnings summary

Executive summary

• Political advertising revenue reached record levels, up 40% over 2020, prompting a second upward revision to full-year guidance for political ad revenue, now expected between $270 million and $290 million, driven by Senate races and ballot issues.

• Scripps operates over 60 local TV stations and national networks, focusing on free, ad-supported TV and expanding in connected TV and over-the-air markets.

• Strategic restructuring completed in Q2 2024, yielding over $40 million in annual savings.

• Scripps is progressing on the divestiture of Bounce TV and expects significant debt paydown by year-end.

• New sports rights agreements, including with the Florida Panthers and Utah Hockey Club, are enhancing local and network sports programming.

Financial highlights

• Q2 2024 revenue was $574 million, down 1.6% year-over-year; YTD revenue was $1.14 billion, up 2.2%.

• Q2 net loss attributable to shareholders was $13 million, or $0.15 per share, a significant improvement from a $682 million loss in Q2 2023, which included a $686 million goodwill impairment.

• Local Media segment profit was $88.1 million, up 8.8% from Q2 2023; Scripps Networks segment profit was $37.7 million, down 37.4%.

• Cash and cash equivalents at quarter-end were $26.7 million; net debt stood at $2.9 billion.

• No preferred stock dividends paid in Q2 to prioritize debt reduction; cumulative unpaid preferred dividends at $27.3 million.

Outlook and guidance

• 2024 political ad revenue guidance raised to $270–$290 million, driven by robust election spending.

• Q3 Local Media revenue expected to rise about 20% year-over-year, with core ad revenue down mid-single digits due to political ad displacement.

• Scripps Networks Q3 revenue projected to decline mid-single digits year-over-year, with expenses also down low single digits.

• Full-year CapEx now expected at $65–$70 million, below previous $70–$80 million guidance.

• Management expects significant debt paydown by year-end and lower leverage entering 2025.