Monday, February 26, 2024
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.
Exceeds Q4 estimates. Q4 was solid, beating our revenue estimate by 3.8% and our adj. EBITDA estimate by 13.4%. Revenues were down 9.6% to $615.8 million due to the absence of year earlier Political and weak National advertising. Recent cost initiatives allowed the company to improve adj. EBITDA margins to 19.1% versus our 17.5% estimate.
Improving advertising trends. The company reported a 1% increase in Core advertising with a favorable outlook of flat to up 1% for the upcoming quarter. Furthermore, its Network business appears to be on the mend, with significantly higher (30%) scatter prices heading into an upfront season. Lastly, management provided guidance for Political that was higher than our estimate to a range of $210 million to $250 million.
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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.
