Scripps National Spelling Bee Celebrates 100 Years, But What Does It Mean for Investors?

The Scripps National Spelling Bee, a cultural institution that has turned young wordsmiths into national heroes for a century, welcomed 243 spellers this May for its 100th anniversary. While the event’s historic significance is undeniable, the question for investors is: How does this milestone translate into value for E.W. Scripps Company (SSP), the media firm that owns the competition?

A Brand Asset, Not a Revenue Engine

The Spelling Bee’s centennial celebration—marked by expanded participation, commemorative exhibits, and a special broadcast on Scripps Networks—has undoubtedly burnished the company’s reputation as a guardian of educational and cultural traditions. However, the Bee itself is a marginal contributor to Scripps’ bottom line. Financial reports note that operational costs for the event have been reduced through cost controls, and its direct revenue impact is negligible. Instead, its value lies in reinforcing the company’s brand equity and audience engagement, particularly through its broadcast networks like ION and Bounce.

The Real Drivers of Scripps’ Stock: Political Ads and Debt Reduction

The recent surge in Scripps’ stock—up 24% in May 2025 to $2.39—owes far more to its Local Media division’s record political advertising revenue than to spelling bees. In Q4 2024, political ads drove a 34% jump in Local Media revenue to $511 million, with $174 million alone in the final quarter. This windfall, concentrated in key swing states like Arizona and Michigan, offset declines in core advertising and propelled the company to an $80.3 million net profit in Q4, reversing a $268 million loss from the prior year.

The company has also made strides in financial discipline. By reducing leverage to 4.8x from 5.7x in 2023 and paying off a $330 million credit facility, Scripps has stabilized its balance sheet. This progress, coupled with new affiliation deals with NBC and CBS and hopes for FCC regulatory reforms, has positioned it to weather future volatility.

The "Deep Value" Case and Risks

At a P/E ratio of just 1.9—far below the media sector median of 15.3—Scripps is a classic "deep value" play. Its AAII Value Grade of "A" reflects this undervaluation, but its Momentum Score of -10.4% highlights persistent underperformance relative to broader markets. Investors betting on a rebound must weigh two factors:

1. Political Ad Tailwinds: While 2024’s election cycle supercharged revenue, future political spending will depend on the 2026 midterms and Scripps’ ability to retain its dominance in swing-state markets.
2. Structural Challenges: The Local Media division’s core advertising revenue fell 11% in 2024 due to political ad displacement, underscoring reliance on cyclical factors. Meanwhile, the Scripps Networks segment—a more stable revenue stream—faces margin pressures, though management aims to boost profitability by 400–600 basis points in 2025.

Conclusion: A Centennial Moment, but the Future Hangs on More Than Words

The Spelling Bee’s 100th anniversary is a triumph for E.W. Scripps’ legacy, but its investment thesis hinges on secular trends in media and advertising. The company’s improved leverage, political ad tailwinds, and cost-cutting discipline have created a compelling entry point for value investors. However, the stock’s weak momentum and reliance on cyclical revenue streams mean patience—and a tolerance for volatility—are required.

At its current valuation, Scripps offers a rare opportunity to bet on a media company with both near-term catalysts (debt reduction, FCC reforms) and a century-old brand asset. Yet investors should remember: In finance, as in spelling, precision matters. The Bee may inspire wonder, but the real test lies in whether Scripps can sustain its financial comeback beyond the next election cycle.

Data as of May 2025. Past performance does not guarantee future results.