The E.W. Scripps Company (SSP) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of $646.3 million, up 14% year-over-year, driven by unprecedented political advertising and disciplined expense management.

• Net income for Q3 2024 was $47.8 million (EPS $0.37), reversing a prior-year loss, with strong EBITDA and margin improvement.

• Aggressive debt reduction underway, with leverage ratio reduced from 6.0x to 5.1x sequentially and further deleveraging expected by year-end.

• Strategic restructuring and Scripps News programming cuts are expected to yield $35 million in annualized net savings starting 2025.

• Transformation plan focuses on maximizing political revenue, expanding live sports, and improving operational efficiency.

Financial highlights

• Q3 2024 revenue was $646.3 million (+14.1% year-over-year); Local Media revenue grew 26% to $445.6 million, with segment profit up 115% to $161 million.

• Scripps Networks revenue declined 6.4% year-over-year to $201.7 million, with segment profit down 15% to $42.1 million.

• Political advertising revenue in Local Media reached $125 million in Q3, up from $9.1 million in the prior-year quarter.

• Q3 2024 net income was $47.8 million; YTD net income was $50.8 million, compared to a YTD loss of $692 million in 2023 (which included a $686 million goodwill impairment).

• Paid down $115 million in debt in Q3; net debt at quarter end was $2.7 billion.

Outlook and guidance

• Full-year 2024 political advertising revenue expected to reach at least $340 million, well above prior guidance.

• Q4 Local Media revenue projected up low- to mid-30% range year-over-year; Scripps Networks revenue expected down mid-single digits.

• Scripps Networks margin improvement of 400–600 basis points targeted for 2025, driven by cost reductions.

• Continued deleveraging expected, with leverage ratio targeted in the high-4x range by year-end.

• Sufficient liquidity projected for the next 12 months, with $34.6 million cash on hand and $403 million available under the revolving credit facility.