E. W. Scripps Company Class A ((SSP)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for E.W. Scripps Company presented a mixed sentiment, reflecting both positive strides and ongoing challenges. On the one hand, the company celebrated successful refinancing efforts, substantial growth in connected TV (CTV) revenue, and strategic sports agreements. On the other hand, these achievements were tempered by declines in local media revenue, financial losses, and weak automotive advertising. While the company’s strategic initiatives are promising, economic and market challenges remain significant.
Successful Refinancing
E.W. Scripps Company announced the successful closure of a $750 million placement of new senior secured second-lien notes. This move has significantly improved the company’s financial conditions by extending the maturity of a substantial portion of its debt by more than 60%, providing a more stable financial footing.
Scripps Networks CTV Revenue Growth
The company reported a remarkable 57% increase in connected TV revenue for Scripps Networks during the second quarter. This growth was largely driven by the strong performance of the ION network and sports programming, highlighting the company’s successful adaptation to the evolving media landscape.
Segment Profit Margin Improvement
Scripps Networks saw an improvement in its segment profit margin, which rose to 27% in Q2 2025 from 18% in Q2 2024. For the first half of 2025, the margin stood at 30%, reflecting the company’s effective cost management and revenue generation strategies.
Strategic Sports Agreements
The company renewed a multiyear agreement with the WNBA and added a fourth NHL team with a full season agreement in a major market. These strategic sports agreements have contributed positively to advertising revenue, showcasing the company’s commitment to expanding its sports programming portfolio.
Decline in Local Media Revenue
The Local Media division experienced an 8% decline in revenue compared to the previous year. This downturn was attributed to the absence of political advertising revenue in an off-election year, underscoring the division’s vulnerability to cyclical advertising trends.
Financial Losses
E.W. Scripps Company reported a second-quarter earnings per share loss of $0.59. This loss was primarily due to significant financing transaction costs and other financial adjustments, highlighting the financial pressures the company is currently facing.
Weak Automotive Advertising
The company continues to grapple with weak automotive advertising, which has contributed to a hesitancy in the advertising market and impacted overall revenue. This sector’s sluggish performance remains a concern for the company’s revenue streams.
Projected Revenue Decline for Local Media
Looking ahead, the Local Media division is expected to see a revenue decline in the mid- to high 20% range for the third quarter. This projection reflects ongoing challenges in the advertising market, although expenses are anticipated to decrease slightly, offering some relief.
Forward-Looking Guidance
During the second quarter of 2025, E.W. Scripps Company provided guidance indicating a challenging outlook for its Local Media division, with an expected revenue decline in the mid- to high 20% range for the third quarter. Despite these challenges, core advertising revenue has outperformed peers, thanks to local sports rights and events like the NBA Finals and NHL playoffs. The Scripps Networks division also anticipates a slight revenue decline in the third quarter, with expenses decreasing in the mid-single digits.
In conclusion, the earnings call for E.W. Scripps Company painted a complex picture of both achievements and hurdles. While the company has made significant strides in refinancing and CTV revenue growth, it continues to face challenges in local media revenue and automotive advertising. The forward-looking guidance suggests a cautious approach as the company navigates these economic and market challenges.