E.W. Scripps Results Hurt by Slack Political Spending
04 11월 2016 - 10:00PM
Dow Jones News
E.W. Scripps Co. swung to a profit in the latest quarter, helped
by strength in retransmission revenue and acquisitions, but results
came in sharply below estimates as the media company contended with
significantly lower-than-anticipated political spending.
"This uncommon—if not downright unique—presidential election,
combined with key Senate races in Ohio, Florida, Colorado and
Wisconsin becoming far less competitive than forecast, leaves us
with much less political advertising revenue than we expected,"
said Chief Executive Rich Boehne.
"Political spending was healthy further down the ticket and
across the country, but presidential spending in some typically
crucial swing states was roughly half of what we saw four years
ago, reducing the opportunity for some Scripps stations," he
said.
He added, however, that "we also used the spectacle of this
election to boost the brands and audiences of our fast-growing
over-the-top video and audio businesses."
E.W. Scripps completed its merger with Journal Communications
last year, under which the companies spun off and then merged their
newspaper-publishing operations into one company and combined their
broadcast operations under Scripps. The move came as broadcast-TV
station owners consolidate and as media companies try to streamline
and shed lower-growth assets.
For the September quarter, Scripps reported a profit from
continuing operations of $12.5 million, or 15 cents a share,
compared with a loss of $24.4 million, or 29 cents a share. The
quarter last year was dragged by a noncash impairment charge and
Journal-related costs reduced net income by $24 million or 31 cents
per share in 2015.
Revenue shot up 23% to $233 million, mostly owing to higher
retransmission revenue, political advertising revenue and growing
digital businesses.
Analysts were looking per-share earnings of 29 cents on $256.5
million in revenue, according to Thomson Reuters.
Television revenue climbed 25% to $197.3 million, as
retransmission revenue rose 46%. Political advertising totaled
$26.9 million during quarter, compared with $4.3 million in
2015.
Digital revenue surged 45% to $15.8 million, helped by last
year's acquisition of podcast advertising network Midroll
Media.
Revenue in company's radio segment, meanwhile, slipped 5.5%.
In April Scripps acquired humor site Cracked from Demand Media
for $39 million in cash. On Friday, Mr. Boehne said at Cracked,
"where the brutal absurdities of current events are our currency,
the election has been an opportunity to build both brand and reach
through clever satire."
Scripps stock, inactive premarket, has lost 31% of its value so
far this year.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
November 04, 2016 08:45 ET (12:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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