Media firm E.W. Scripps Q2 revenue falls 5.8%

Overview

• E.W. Scripps Q2 revenue falls 5.8% yr/yr to $540 mln

• Loss attributable to shareholders widens to $51.7 mln or 59 cents per share

• Co highlights station swap with Gray Media, WNBA agreement renewal

Outlook

• Scripps expects Q3 Local Media revenue down mid-to-high 20% range

• Scripps Networks Q3 revenue to decline low single-digit percent range

• Company forecasts full-year cash interest paid between $170-$175 mln

• Scripps sees full-year capital expenditures between $45-$50 mln

Result Drivers

• SPORTS STRATEGY - Scripps Sports strategy helped mitigate declines in core advertising revenue, per CEO Adam Symson

• REFINANCING COSTS - Financing transaction costs impacted Q2 loss attributable to shareholders

• STREAMING REVENUE - WNBA and NWSL programming drove 57% growth in streaming/connected TV revenue

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the broadcasting peer group is "hold"

• Wall Street's median 12-month price target for E W Scripps Co is $6.00, about 47.7% above its August 6 closing price of $3.14

Press Release: ID:nPn1lBBQ9a