Contradictions in Scripps' Q2 2025 Earnings Call: Advertising Performance, Strategy Shifts, and Financial Outlook Under Scrutiny

Advertising outlook and core advertising performance, advertising environment and macroeconomic conditions, networks division structural pressure and sports strategy, regulatory environment and acquisitions strategy, and deleveraging efforts and financial targets are the key contradictions discussed in The E.W. Scripps Company's latest 2025Q2 earnings call.



Debt Reduction and Financial Health:
- The E.W. Scripps Company refinanced its debt, moving from $1.7 billion in current total debt to $687 million in long-term debt, reducing its leverage ratio by more than 1.5 turns.
- This was achieved through strategic refinancing transactions, including a new money deal and favorable rate reductions, enhancing the company's financial health.

Core Advertising Performance:
- Local Media division's core advertising revenue outperformed peers, despite a challenging off-election year, with sports deals and events like the NBA Finals driving growth.
- While core advertising revenue was down 2%, it was considered best-in-class among peers, supported by local sports rights deals and improved monetization of sports assets.

Scripps Networks Growth:
- Scripps Networks division revenue was $206 million, with a 57% increase in connected TV (CTV) revenue, driving 40% growth in streaming viewership.
- Growth was driven by premium advertising rates for sports content, particularly the WNBA and NWSL, along with strategic distribution across multiple platforms.

Earnings Impact and Guidance:
- Q2 earnings per share was a loss of $0.59, affected by $38 million in financing transaction costs and a $3 million loss from debt extinguishment.
- For Q3, Local Media division revenue is expected to be down in the mid- to high 20% range, with Local Media expenses down in the low to mid-single-digit percent range.