Monday, August 10, 2020
E.W. Scripps Company (SSP)
Dish, The Dirt On The Quarter
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.
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Q2 revenue misses, but cash flow much better than expected. Q2 revenues of $358.9 million were below our expectations of $372.0 million. The revenue variance was virtually all related to Retrans negotiations with Dish TV, which carried the Scripps stations at the old rate until it took them off its service as of July 25th. Cash flow, as measured by adj. EBITDA, was above expectations, $33.7 million versus our estimate of $22.5 million.
Revenue and cash flow trends better than expected for Q3. Management indicates significantly improving advertising revenue trends in Q3, with strong Political advertising, moderating core advertising trends, and favorable Retrans revenue growth, despite the Dish dispute. The favorable revenue trends combined with …
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This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
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