The E.W. Scripps Company (SSP) achieved a remarkable milestone in the third quarter of 2024, generating record revenue of $646 million.
This strong performance was propelled by an unprecedented surge in political advertising revenue, a key driver for the company’s growth.
With political advertising revenue expected to exceed $340 million by the end of the year, E.W. Scripps has successfully capitalized on the presidential election cycle, positioning itself for continued financial strength.
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Political Advertising Fuels Record-Breaking Revenue Growth of E.W. Scripps
Scripps’ Local Media division saw an impressive 26% increase in revenue, reaching $446 million. The company’s political ad sales played a pivotal role, with political revenue skyrocketing to $125 million—up from just $9.1 million during the same quarter in the previous year.
The strong demand for political ads, particularly in crucial battleground states such as Arizona, Michigan, and Ohio, has contributed significantly to this record-breaking performance.
Despite the surge in political advertising, the core advertising revenue of E.W. Scripps dipped by 9.2% to $129 million, as political campaigns displaced some traditional ad buys in 15 key markets.
However, this dip was more than offset by the gains in political ad revenue, further underscoring the importance of political cycles to Scripps’ business.
Solid Performance Across Scripps Networks Division and Continued Cost Control
The Scripps Networks division posted $202 million in revenue, a 6.4% decline from the previous year.
However, tight expense management led to a 3.7% reduction in operating costs, which helped partially mitigate the revenue decline.
With additional cost controls set to kick in during Q4, including a projected decrease in programming expenses at Scripps News, the company expects to see even greater cost reductions moving forward.
Debt Reduction Strategy Leads to Significant Improvement in Leverage Ratio
In addition to revenue growth, E.W. Scripps made notable strides in reducing its debt. The company paid down $115 million in debt during Q3, bringing its leverage ratio down to 5.1x from 6.0x in Q2.
By the end of the year, Scripps plans to reduce its debt by approximately $300 million, a key part of its strategy to strengthen its financial position and improve long-term growth prospects.
WNBA and Sports Programming Drive Engagement and Revenue
ION’s strong performance in sports programming also contributed to Scripps’ overall revenue growth.
Notably, ION’s Friday night WNBA telecasts surpassed 1 million viewers on average, marking a significant increase from the previous year.
One standout moment was the August 30 broadcast between the Indiana Fever and Chicago Sky, which attracted nearly 2 million viewers, further demonstrating the growing appeal of sports content on the network.
Looking Ahead: Continued Growth and Debt Reduction
Scripps is confident that the momentum generated by strong political advertising will carry through the fourth quarter, with political revenue continuing to exceed expectations.
The company is poised to further reduce its debt, with a projected total of $300 million in debt repayment by the end of 2024.
Additionally, the company expects continued improvements in operating margins, particularly in its Scripps Networks division, with a 400-600 basis point increase in 2025.
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