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, despite declines in core advertising and distribution revenue.

• Strategic restructuring, including centralization and Scripps News programming cuts, was substantially completed by Q2 2024, yielding over $40 million in annual savings and $35 million in annualized net savings starting 2025.

• Aggressive debt reduction plan in place, with leverage ratio reduced from 6.0x to 5.1x sequentially, targeting high 4x by year-end.

• No preferred stock dividends were declared or paid in 2024, providing flexibility for debt reduction; $41.4 million in cumulative unpaid dividends as of September 30, 2024.

• Transformation plan focused on maximizing political revenue, expanding live sports, and cost management to improve financial performance and reduce debt.

Financial highlights

• Q3 2024 revenue: $646.3 million (+14.1% year-over-year); Local Media revenue up 26% to $445.6 million, driven by $125 million in political ad revenue.

• Q3 2024 net income was $47.8 million, reversing a net loss of $3.7 million in Q3 2023; EPS was $0.37, up from $(0.19) in Q3 2023.

• Adjusted EBITDA for Q3: $176.8 million, up from $100.9 million in Q3 2023.

• Scripps Networks revenue was $202 million, down 6.4% year-over-year, with segment profit at $42.1 million.

• 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 actions including Scripps News restructuring.

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

• Full-year gross and net retransmission revenue expected to be up in the low single-digit percentage range.