E.W. Scripps Reports 14.1% Revenue Growth, Net Income Turnaround in Q3 2024

As of September 30, 2024, E.W. Scripps Company reported total current assets of $629.5 million, down from $676.1 million at the end of 2023. Total assets also decreased to $5.25 billion from $5.41 billion. Current liabilities slightly decreased to $470.6 million, while long-term debt reduced from $2.90 billion to $2.74 billion. Total equity increased to $1.22 billion, up from $1.16 billion at the end of 2023.

For the third quarter of 2024, E.W. Scripps achieved operating revenues of $646.3 million, a 14.1% increase from $566.5 million in the same period of 2023. Advertising revenues rose significantly to $447.3 million from $355.2 million. Operating income for the quarter was $121.8 million, compared to $53.1 million in the prior year. The company reported net income of $47.8 million, a turnaround from a net loss of $3.7 million in Q3 2023. Net income attributable to shareholders was $33.0 million, compared to a loss of $16.2 million in the same quarter of the previous year.

For the nine months ended September 30, 2024, total operating revenues reached $1.78 billion, up from $1.68 billion in 2023. Net income for this period was $50.8 million, a significant recovery from a net loss of $692.0 million in the prior year. The company’s cash flow from operating activities improved to $212.4 million, compared to $49.1 million in the same period of 2023.

The Local Media segment saw a 26.2% increase in operating revenues for Q3 2024, totaling $445.6 million, while segment profit surged to $160.7 million from $74.9 million in the same quarter of 2023. Conversely, the Scripps Networks segment experienced a decline in revenues and profit, with operating revenues of $201.7 million, down 6.4% year-over-year.

Strategically, the company announced a significant reduction in Scripps News' national network programming, leading to the elimination of over 200 jobs, with expected annual savings of $35 million starting in 2025. Restructuring costs for Q3 2024 totaled $12.7 million, up from $4.7 million in the same quarter of 2023. The company also received $18.1 million from the sale of Broadcast Music, Inc. in February 2024 and is exploring the sale of the Bounce multi-cast television network.

The effective income tax rate for the nine months ended September 30, 2024, was 34%, compared to 2.4% in the same period of 2023, influenced by a non-deductible goodwill write-off in the previous year. The company continues to manage its debt, with $1.3 billion in senior notes outstanding and a debt repurchase program allowing for a reduction of up to $500 million in outstanding principal.