E.W. Scripps Shares Surge 6% Following Record Political Advertising Revenue

CINCINNATI - E.W. Scripps Company (NASDAQ: SSP) shares rose by 6.5% after the media company reported record third-quarter revenue driven by robust political advertising, although earnings fell short of expectations.
E.W. Scripps reported adjusted earnings of $0.37 per share for the third quarter, below analysts' expectations of $0.52. However, revenue increased by 14% year-over-year to $646.3 million, exceeding the consensus estimate of $627.86 million.
Revenue from the company’s Local Media segment grew by 26% to $445.6 million, driven by political advertising revenue rising to $125.2 million from just $9.1 million in the same quarter last year. Scripps now expects its political advertising revenue for the full year 2024 to reach at least $340 million, significantly surpassing its previous guidance of $270-290 million.
Scripps President and CEO Adam Symson stated, "Scripps' Local Media political advertising revenue was nearly 30% higher than its political revenue in the previous presidential election year, which was also a record year." He added, "This 2024 level is a testament to the resilience of local broadcasting as an excellent tool for candidates and political action committees to communicate their messages, providing tremendous reach."
Strong political advertising performance helped offset weakness in core advertising, which declined by 9.2% year-over-year to $129.3 million due to a shift in political ads. Meanwhile, revenue from the Scripps Networks segment decreased by 6.4% to $201.7 million.
Scripps used its strong cash flow to pay down $115 million in debt during the third quarter, reducing its leverage ratio from 6.0x at the end of the second quarter to 5.1x. The company expects to pay down approximately $300 million in debt this year.