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- **Revenue Growth Driven by Sports**: Q3 sports advertising up 30%, Connected TV revenue +41% YoY, with plans for double-digit growth in 2026.
- **Debt Reduction and Efficiency**: $123M from station sales used to deleverage, net leverage down to 4.6x. Networks margin target: 400-600 basis points improvement.
- **Strategic M&A**: Sold stations at 9.2x and 8.5x EBITDA multiples, exploring further portfolio optimization.
- **Political Advertising Momentum**: 2026 midterms expected to drive record spending in 7 competitive races, with Scripps' portfolio well-positioned.

**【CEO Summary Section】**
- **Scripps Sports Strategy Success**: Q3 revenue growth driven by 30% increase in sports-related advertising, including new NHL partnerships and women's sports inventory. Connected TV revenue up 41% YoY, with plans for double-digit growth in 2026.
- **Expense Management**: Local Media expenses down 4% YoY; Scripps Networks expenses reduced by 7.5% due to operational efficiency. Targeting 400-600 basis points margin improvement in Networks.
- **M&A and Portfolio Optimization**: Sold WFTX (Fort Myers) and WRTV (Indianapolis) at 9.2x and 8.5x EBITDA multiples, generating $123M cash to deleverage debt. Exploring further station swaps and sales for strategic portfolio optimization.
- **AI and Transformation**: Early AI adoption in newsrooms and sales teams to enhance efficiency and journalism quality. Full details on transformation initiatives to be shared in Q1 2026.

**【CFO Financial Commentary】**
- **Q3 Financials**: Local Media revenue down 27% (due to political ad absence), but core advertising up 2% YoY. Networks revenue flat at $201M, with Connected TV contributing 20% of viewing. Segment profit for Networks at $53M (27% margin).
- **Debt Reduction**: Refinanced $750M in senior notes at 9.875%, reducing cash interest by $15M annually. Paid off $200M of 2028 term loan and full revolver balance, lowering net leverage to 4.6x.
- **Q4 Guidance**: Local Media revenue expected down 30% YoY, but core up 10% driven by sports. Networks revenue down low double digits due to political ad absence and Medicare open enrollment delays.

**【Q&A Key Highlights】**
- **Disney-YouTube Dispute**: Scripps remains dark on YouTube TV but sees minimal impact on revenue due to diversified distribution (OTA, streaming). Focus on direct negotiations with virtual MVPDs.
- **Political Advertising 2026**: Expect record spending in 7 competitive governor and Senate races, with Scripps' portfolio well-positioned in key markets (AZ, CO, MI, NV, OH, TN).
- **Advertising Environment**: Local core advertising strong (up 2% Q3, +10% Q4 guide), but national networks face challenges in DR and pharma due to macro uncertainty.
- **M&A Strategy**: Management-led, Board-supported approach with family trust alignment. Prioritizes accretive station sales and swaps, with $123M from recent deals used to deleverage debt.

The E.W. Scripps Company(SSP)-20251107-2025 Q3 Earnings call transcript

Local Media

SSP Networks

Other

Intersegment Eliminations

SSP

SSP fundamentals

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