Monday, August 07, 2023
The E.W. Scripps Company (NASDAQ: SSP) is a diversified media company focused on creating a better-informed world. As one of the nation’s largest local TV broadcasters, Scripps serves communities with quality, objective local journalism and operates a portfolio of 61 stations in 41 markets. The Scripps Networks reach nearly every American through the national news outlets Court TV and Newsy and popular entertainment brands ION, Bounce, Defy TV, Grit, ION Mystery, Laff and TrueReal. Scripps is the nation’s largest holder of broadcast spectrum. Scripps runs an award-winning investigative reporting newsroom in Washington, D.C., and is the longtime steward of the Scripps National Spelling Bee. Founded in 1878, Scripps has held for decades to the motto, “Give light and the people will find their own way.”
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Beats expectations. The company reported a solid second quarter, beating both our revenue and adj. EBITDA estimates. Total company revenues decreased a modest 2.0% to $582.8 million, versus our $572.5 million estimate. Combined with the revenue improvement and the lower expenses, adj. EBITDA of $120.9 million was well above our $90 million estimate.
Is the worst behind us? The upside revenue variance was due to stronger than expected National Media revenues, $231.2 million versus our $217.0 million estimate. The latest results marked a sequential quarterly improvement from a Q1 decline of 9.5% to a more modest 3.2% decline in Q2. While Q3 guidance is not as hopeful, management indicated that scatter prices are improving for its Network business.
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*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.