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

Executive summary

• Political advertising revenue reached record levels, up 40% over 2020, driving a second raise in full-year guidance to $270–$290 million, with strong momentum from Senate races, presidential campaign changes, and ballot issues.

• Local Media division revenue rose nearly 4% year-over-year, with segment profit up 8.8% to $88.1 million, while core advertising declined 6.9% due to displacement from political ads and tough sports comps.

• Scripps Networks revenue fell 9.7% year-over-year to $209 million, impacted by a soft upfront, discounted streaming inventory, and lower ratings, but Connected TV revenue grew 11% after programmatic adjustments.

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

• Aggressive debt reduction remains a top priority, with asset sales (including Bounce TV and real estate) and incremental cash flow earmarked for paydown, targeting a leverage ratio in the low- to mid-5x range by year-end.

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 Q2 revenue rose 3.6% to $365 million, driven by a $24.3 million increase in political advertising; core advertising fell 6.9%.

• Scripps Networks Q2 revenue declined 9.7% to $209 million; segment profit fell 37.4% to $37.7 million.

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

Outlook and guidance

• Full-year political ad revenue guidance raised to $270–$290 million, a record level.

• Local Media division Q3 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 expected to decline mid-single digits year-over-year, with expenses down low single digits; further expense reductions anticipated in Q4.

• CapEx now expected at $65–$70 million, below prior guidance; interest paid $195–$205 million.

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