E.W. Scripps Q2 Earnings Call: Mixed Sentiment Amid Successful Refinancing, CTV Growth, and Sports Agreements

E.W. Scripps Company reported mixed Q2 earnings, with successful refinancing efforts and 57% connected TV revenue growth, but declines in local media revenue, financial losses, and weak automotive advertising. The company's strategic sports agreements and improved Scripps Networks segment profit margin are promising, but economic and market challenges persist.

E.W. Scripps Company (SSP) reported mixed second-quarter (Q2) 2025 earnings, with a 5.8% year-over-year (YoY) decline in revenue to $540 million, falling short of analyst estimates [1]. The company attributed the revenue decline primarily to a 5.8% drop in Local Media division revenue, driven by a significant reduction in political advertising due to the off-election year [2]. Despite these challenges, the company's Scripps Networks segment saw a 48.2% increase in segment profit, driven by a 57% growth in connected TV (CTV) revenue [3].

The company's financial performance was further impacted by refinancing costs, which widened the loss attributable to shareholders to $51.7 million or 59 cents per share [1]. However, Scripps successfully refinanced $750 million of new senior secured second-lien notes, improving its financial condition and extending debt maturities [2].

Key highlights of the Q2 results include:

1. Connected TV Revenue Growth: CTV revenue grew by 57% for the quarter, driven by strong performance from the ION network and sports partnerships [2].
2. Scripps Networks Segment Profit Margin: The Scripps Networks segment saw a 900 basis point improvement in its margin, reflecting effective cost management and strategic focus [2].
3. Station Swaps and Asset Sales: The company is actively pursuing portfolio optimization through station swaps and asset sales to improve financial performance and reduce debt leverage [2].
4. Advertising Challenges: The Local Media division experienced an 8% decline in revenue due to the absence of political advertising and a soft advertising market, with automotive being the weakest category [2].
5. Full-Year Guidance: The company expects Q3 Local Media revenue to decline by a mid-to-high 20% range and Q3 Scripps Networks revenue to decline by a low single-digit percent range. Full-year cash interest paid is expected to be between $170-$175 million, and capital expenditures are forecasted to be between $45-$50 million [1].

Analysts have a mixed outlook on the company's stock, with the current average analyst rating being "hold" and the breakdown of recommendations being 2 "strong buy" or "buy", 2 "hold", and 1 "sell" or "strong sell" [1]. The median 12-month price target for E.W. Scripps Co is $6.00, about 47.7% above its August 6 closing price of $3.14 [1].

E.W. Scripps Company faces ongoing challenges in the advertising environment, with political advertising expected to be similar to past odd years and core advertising guided to be flat in Q3. However, the company anticipates a gradual build in advertising towards September, driven by political crowd-out and sports monetization. As uncertainty in the macroeconomic environment diminishes, there could be a rebound in advertising demand, potentially leading to a stronger Q4 [2].

In conclusion, E.W. Scripps Company reported mixed Q2 earnings, with successful refinancing efforts and strong growth in CTV revenue, but declines in local media revenue and financial losses. The company's strategic sports agreements and improved Scripps Networks segment profit margin are promising, but economic and market challenges persist.

References:

[1] Reuters. (2025, August 8). E.W. Scripps Co. Q2 Revenue Falls 5.8% YoY. Retrieved from https://www.tradingview.com/news/reuters.com,2025:newsml_PLXA60BC7:0-media-firm-e-w-scripps-q2-revenue-falls-5-8/

[2] Yahoo Finance. (2025, August 12). E.W. Scripps Co. Q2 Earnings Report. Retrieved from https://finance.yahoo.com/news/e-w-scripps-co-ssp-070712858.html

[3] Nasdaq. (2025, August 10). E.W. Scripps Q2 Revenue Falls 5.8%. Retrieved from https://www.nasdaq.com/articles/ew-scripps-ssp-q2-revenue-falls-6