E.W. Scripps Co. reported a third-quarter loss amid lower revenues at its stations and networks and restructuring charges.
Scripps’s loss was $16.2 million, or 19 cents a share, compared to net income of $33.7 million, or 38 cents a share, a year ago.
Restructuring charges in the quarter were $4.7 million, including employee severance-related costs, lease impairments and consulting expenses.
Revenue fell 7.4% to $567 million.
Connected-TV revenue was up 75% year over year, excluding a low-margin programmatic product that is being shut down. The company expects CTV revenue to reach nearly $100 million in 2023.
Profits at Scripps's local media division fell to $74.9 million, from $72 million during last year’s election cycle.
Revenue was down 6.7% to $353 million.
Distribution revenue rose 20% to $199 million as the company completed renewals with the bulk of its distributors.
Core advertising revenue–excluding political advertising–was down 3.1% to $142 million. Political revenue was just $9.1 million, compared to $63.2 million a year ago.
At Scripps Networks, profits dove to $49.7 million from $72 million a year ago as revenues declined and programming and distribution costs increased.
Revenue fell 8.5% to $215 million
For the fourth quarter, Scripps said local media revenue would be down low to middle digits and Scripps Network revenue will be down in the 10% range.
“This was a big year for Scripps in testing the strength of the local broadcast distribution revenue ecosystem, and we are exceedingly pleased with the results,” said CEO Adam Symson. “In renewing the majority of our legacy cable and satellite households, we not only smoothly and successfully created new agreements but realized new value,including by expanding the number of stations on which we are paid. Credit for this goes in part to our Scripps Sports local strategy,” Symson said.
“We are creating new value with our existing Scripps Networks brands through distribution on connected television services including YouTubeTV, Roku, Fubo, Pluto, Samsung TV Plus and Vizio WatchFree,” Symson said. “Scripps has quickly grown to be one of the leading programmers in the ad-supported streaming marketplace.”
