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1. Company Snapshot

1.a. Company Description

The E.W. Scripps Company, together with its subsidiaries, operates as a media enterprise through a portfolio of local and national media brands.The company operates through Local Media, Scripps Network, and Other segments.The Local Media segment operates broadcast television stations, which produce news, information, and entertainment content, as well as its related digital operations.


This segment also runs network, syndicated, and original programming.The Scripps Network segment comprises of national television networks.The Network operates through over-the-air broadcast, cable/satellite, connected TV, and digital distribution.


In addition, the company provides content and services through the internet, smartphones, and tablets.Further, the company provides Newsy, a national news network, which provides politics, entertainment, science, and technology news; and Scripps National Spelling Bee, an investigative reporting newsroom in Washington, D.C. Additionally, the company offers ION, a national broadcast television network that delivers popular crime and justice procedural programming through over-the-air broadcast and pay TV platforms.It serves audiences and businesses.


The E.W. Scripps Company operates through a network of 61 television stations.The company was founded in 1878 and is headquartered in Cincinnati, Ohio.

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1.b. Last Insights on SSP

The recent 3-month performance of The E.W. Scripps Company was negatively impacted by several factors. The company's refinancing transactions, completed on April 10, 2025, involved the replacement of existing term loans with new ones, which may have resulted in increased interest expenses. Additionally, the company's decision to refinance its revolver and 2026, 2028 term loans may have led to a temporary increase in debt levels, potentially affecting its liquidity and financial flexibility. Furthermore, the company's recent agreement with ION to broadcast the Elevance Health Women's Fort Myers Tip-Off may have diverted resources away from other business areas, potentially impacting revenue growth. The company's focus on securing new broadcasting rights may also have led to increased expenses, which could negatively impact its bottom line. The company's upcoming earnings release on May 8, 2025, may provide further insight into its current financial performance and any potential challenges it is facing.

1.c. Company Highlights

2. E.W. Scripps' Q3 Earnings: A Mixed Bag

E.W. Scripps reported strong third-quarter results, beating expectations on nearly every reporting line, driven by Scripps Sports and tight expense controls. Revenue for the Local Media division was down 27% due to the absence of political advertising, while core revenue was up nearly 2%. The Scripps Networks division revenue was flat compared to the year-ago quarter, with Connected TV revenue up 41% year-over-year. The company's EPS came in at -$0.4, missing estimates of -$0.16.

Publication Date: Nov -24

📋 Highlights
  • Strong Q3 Performance:: Exceeded expectations with revenue growth driven by Scripps Sports (30% volume increase) and CTV revenue up 41% YoY.
  • Debt Reduction:: Paid off $750M in debt via a senior secured note, improving the balance sheet and reducing interest payments.
  • Local Media Revenue Decline:: Down 27% YoY due to absent political advertising, with core revenue up nearly 2% in Q3.
  • CTV Growth Engine:: Year-to-date CTV revenue grew over 35%, projected to remain a "double-digit growth engine" in 2025.
  • Q4 Guidance:: Local Media revenue expected down 30%, Networks down in low-double-digits, citing political ad absence and Medicare enrollment impacts.

Segment Performance

The Local Media division's core revenue growth was a positive note, driven by a strong sports strategy, with total sports volume up 30% and WNBA seeing significant increases of 90%. The Scripps Networks division saw growth in Connected TV, with year-to-date growth of over 35% and a double-digit growth engine for the company. As Adam Symson noted, "We're seeing strong growth in CTV, with year-to-date growth of over 35% and a double-digit growth engine for us."

Guidance and Outlook

The company provided fourth-quarter guidance, expecting Local Media division revenue to be down 30% and Scripps Networks division revenue to be down in the low-double-digit range. Analysts estimate next year's revenue growth at 9.1%. The company's focus on optimizing its portfolio of stations and expanding in sports is expected to drive revenue growth and profit.

Valuation

With a P/S Ratio of 0.16 and EV/EBITDA of 1.04, the company's valuation appears reasonable. However, the ROE of 9.82% and ROIC of 3.02% suggest that the company's profitability is not particularly high. The Net Debt / EBITDA ratio of 0.11 indicates a healthy debt position. Free Cash Flow Yield is quite high at 40.18%, which could be a positive indicator for investors.

Challenges Ahead

The company faces challenges, including the impact of the government shutdown on network revenue and the trends in CTV revenue. The YouTube TV, Disney dispute resulted in Scripps remaining dark, but the company did not see direct evidence of this impacting its revenue performance or bottom line. The regulatory front, including the FCC's potential action on the prohibition against groups like Scripps owning 2 stations in 1 market, is also a factor to watch.

3. NewsRoom

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Market Today: Deal Talks, Retail Wins, AI Chips, and Crypto Volatility

Dec -02

Source: gurufocus.com

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Broadcast station owners want to consolidate. They're struggling to get deals to the finish line

Dec -02

Source: cnbc.com

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Scripps adopts limited-duration shareholder rights plan

Nov -26

Source: globenewswire.com

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Market Today: Alphabet rallies, Amazon's $50B AI push

Nov -24

Source: gurufocus.com

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Sinclair offers to buy E.W. Scripps in bid to expand broadcast TV reach

Nov -24

Source: reuters.com

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Scripps Confirms Unsolicited Sinclair Bid

Nov -24

Source: wsj.com

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First Look: HD cuts outlook, NVDA watched, Alphabet stake, Novo cuts

Nov -18

Source: gurufocus.com

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Market Today: Nvidia earnings, Ford-Amazon tie-up, Boeing lands mega order

Nov -17

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.59%)

6. Segments

Local Media

Expected Growth: 3.5%

The 3.5% growth of Local Media from The E.W. Scripps Company is driven by increasing demand for local news and information, political advertising spend, and a growing presence in digital media. Additionally, the company's focus on diversifying its revenue streams through digital marketing services and podcasting also contributes to its growth.

Scripps Networks

Expected Growth: 3.8%

Scripps Networks' 3.8% growth is driven by increasing demand for lifestyle and entertainment content, expansion into new markets, and strategic investments in digital platforms. Additionally, the company's focus on niche audiences, such as foodies and home enthusiasts, has led to higher advertising revenue and affiliate fees.

Other

Expected Growth: 3.2%

The 3.2% growth in Other segment of The E.W. Scripps Company is driven by increasing demand for digital services, expansion of Katz Broadcasting networks, and growth in podcasting revenue. Additionally, strategic acquisitions and partnerships have contributed to the segment's growth, along with a focus on niche audiences and targeted advertising.

Intersegment Eliminations

Expected Growth: 0.0%

The 0.0% growth in Intersegment Eliminations from The E.W. Scripps Company is attributed to the offsetting effects of increased broadcasting revenues and higher operating expenses, resulting in a neutral net impact. This is likely due to the company's efforts to optimize its broadcasting operations and invest in digital media, which have countered the decline in traditional advertising revenue.

7. Detailed Products

Local Media

The E.W. Scripps Company operates a diverse group of local television stations, including ABC, CBS, NBC, FOX, and CW affiliates, as well as independent stations.

National Media

The company operates a portfolio of national media brands, including Newsy, a digital video news service, and Stitcher, a podcast platform.

Podcasting

Scripps owns and operates a range of popular podcasts, including Stitcher, Midroll, and Earwolf.

Digital Marketing Services

The company offers a suite of digital marketing services, including website design, search engine optimization, and social media management.

Over-the-Top (OTT) Video

Scripps operates a range of OTT video services, including Newsy and Stitcher, offering live and on-demand video content.

8. The E.W. Scripps Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for The E.W. Scripps Company is medium due to the presence of alternative media outlets and online platforms that offer similar content.

Bargaining Power Of Customers

The bargaining power of customers for The E.W. Scripps Company is low due to the company's diverse range of media outlets and lack of dependence on a single customer.

Bargaining Power Of Suppliers

The bargaining power of suppliers for The E.W. Scripps Company is medium due to the presence of multiple suppliers of content and services, but the company's scale and reputation also give it some bargaining power.

Threat Of New Entrants

The threat of new entrants for The E.W. Scripps Company is high due to the relatively low barriers to entry in the media industry and the increasing popularity of digital media platforms.

Intensity Of Rivalry

The intensity of rivalry for The E.W. Scripps Company is high due to the competitive nature of the media industry, with many established players and new entrants vying for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 71.72%
Debt Cost 7.15%
Equity Weight 28.28%
Equity Cost 13.43%
WACC 8.92%
Leverage 253.58%

11. Quality Control: The E.W. Scripps Company passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Scripps

A-Score: 4.8/10

Value: 9.8

Growth: 7.1

Quality: 6.8

Yield: 0.0

Momentum: 4.0

Volatility: 1.3

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fuboTV

A-Score: 4.5/10

Value: 6.0

Growth: 5.2

Quality: 5.6

Yield: 0.0

Momentum: 9.5

Volatility: 0.7

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iHeartMedia

A-Score: 3.7/10

Value: 7.0

Growth: 1.2

Quality: 4.2

Yield: 0.0

Momentum: 8.5

Volatility: 1.0

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Urban One

A-Score: 3.6/10

Value: 9.6

Growth: 1.6

Quality: 3.2

Yield: 0.0

Momentum: 4.0

Volatility: 3.0

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Stock-Card
MediaCo Holding

A-Score: 3.2/10

Value: 7.5

Growth: 2.8

Quality: 4.9

Yield: 0.0

Momentum: 3.5

Volatility: 0.7

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Cumulus Media

A-Score: 2.0/10

Value: 9.0

Growth: 1.0

Quality: 2.2

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.35$

Current Price

4.35$

Potential

-0.00%

Expected Cash-Flows