Unpacking Q2 Earnings: E.W. Scripps and the Broadcasting Industry's Shift to Streaming Services.

E.W. Scripps reported Q2 revenues of $540.1 million, down 5.8% YoY, missing analysts' estimates by 0.8%. Despite this, the company beat adjusted operating income estimates. Broadcasting stocks have performed well since earnings, with share prices up 18.6% on average. FOX reported revenues of $3.29 billion, up 6.3% YoY, outperforming analysts' expectations by 5.5%. iHeartMedia reported Q2 revenue of $516 million, down 2.9% YoY, beating analysts' expectations by 3.5%.

Title: E.W. Scripps Misses Q2 Revenue Estimates but Beats Adjusted Operating Income

E.W. Scripps (NASDAQ: SSP) reported its Q2 2025 financial results, showing a 5.8% year-on-year (YoY) decline in revenue to $540.1 million, falling short of analysts' expectations by 0.8% [1]. Despite this, the company managed to beat adjusted operating income estimates. The quarterly earnings per share (EPS) came in at -$0.59, significantly below the analysts' consensus of -$0.22 [1]. E.W. Scripps also reported an adjusted EBITDA of $88.86 million, exceeding analysts' estimates by 5% [1].

The company's operating margin improved to 14.2% from 9.7% in the same quarter last year, indicating higher operational efficiency [1]. The company's operating expenses decreased to $463.48 million, contributing to the improved margin.

E.W. Scripps' revenue decline was primarily driven by a 5.8% YoY drop in core advertising revenue, which was partially mitigated by a 57% growth in streaming and connected TV revenue, driven by WNBA and NWSL programming [2]. The company's CEO, Adam Symson, highlighted the sports strategy as a key factor in mitigating the decline in core advertising revenue [2].

The company expects Q3 Local Media revenue to decline by mid-to-high 20% and Q3 Networks revenue to decline by a low single-digit percentage. For the full year, Scripps forecasts cash interest paid between $170-$175 million and capital expenditures between $45-$50 million [2].

Analysts remain cautious, with the current average rating being "hold" and the breakdown of recommendations being 2 "strong buy" or "buy," 2 "hold," and 1 "sell" or "strong sell" [2]. The median 12-month price target for E.W. Scripps is $6.00, about 47.7% above its August 6 closing price of $3.14 [2].

Key Takeaways

- Revenue Decline: E.W. Scripps reported a 5.8% YoY decline in revenue, missing analysts' estimates by 0.8%.
- Operating Margin: The company's operating margin improved to 14.2%, indicating higher operational efficiency.
- Streaming Revenue Growth: Streaming and connected TV revenue grew by 57%, driven by WNBA and NWSL programming.
- Analyst Sentiment: The average analyst rating is "hold," with a median 12-month price target of $6.00.

References

[1] https://finance.yahoo.com/news/e-w-scripps-nasdaq-ssp-093107235.html
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_PLXA60BC7:0-media-firm-e-w-scripps-q2-revenue-falls-5-8/