Tuesday, November 10, 2020
E.W. Scripps Company (SSP)
A Political Firestorm
The E.W. Scripps Co. (www.scripps.com) serves audiences and businesses through a growing portfolio of television, print and digital media brands. After approval of its acquisition of two Granite Broadcasting stations later this year, Scripps will own 21 local television stations as well as daily newspapers in 13 markets across the United States. It also runs an expanding collection of local and national digital journalism and information businesses including digital video news service Newsy. Scripps also produces television programming, runs an award-winning investigative reporting newsroom in Washington, D.C., and serves as the longtime steward of one of the nation’s largest, most successful and longest-running educational programs, Scripps National Spelling Bee. Founded in 1879, Scripps is focused on the stories of tomorrow.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q3 exceeds expectations. Local Media revenues, boosted by better Political and Core advertising, lead the company to over achieve expectations. Total company revenues were $493.7 million versus our $458.9 million estimate. Political advertising was a strong $96.4 million versus our $82.0 million estimate. Core advertising was 15.6% better than our estimate, $151.5 million versus $131.0 million. National Media revenues were 4.1% above expectations, as well.
Cash flow stronger than expected. Cash flow, as measured by adjusted EBITDA, was $145.9 million, versus our estimate of $119.4 million. The results reflected expenses that were largely in line, given the strict cost control measures. As such, the stronger revenues fell to the bottom line. Given better than expected high margin Political advertising, management increased its free cash flow guidance …
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.