Monday, November 08, 2021
E.W. Scripps (SSP)
We Are Connected!
The E.W. Scripps Co. (www.scripps.com) serves audiences and businesses through a growing portfolio of television, print and digital media brands. After approval of its acquisition of two Granite Broadcasting stations later this year, Scripps will own 21 local television stations as well as daily newspapers in 13 markets across the United States. It also runs an expanding collection of local and national digital journalism and information businesses including digital video news service Newsy. Scripps also produces television programming, runs an award-winning investigative reporting newsroom in Washington, D.C., and serves as the longtime steward of one of the nation’s largest, most successful and longest-running educational programs, Scripps National Spelling Bee. Founded in 1879, Scripps is focused on the stories of tomorrow.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q3 exceeds expectations. Total company revenues increased 11.7% to $555.2 million, which was slightly above our $546.8 million estimate. The largest upside revenue variance was in the company’s Networks segment, which increased 17.8%, above our 14.2% growth estimate and above management’s previous guidance of up mid teens. Adjusted EBITDA was $132.4 million, 14.3% above our $115.8 million estimate. The largest EBITDA variance was in its Network segment. Our original estimates factored in higher costs due to the launch of Newsy, Defy and True—-.
Limited supply chain/labor shortage impact. All of its leading advertising categories are trending favorably and more than offsetting the Auto category, which has been hurt by chip shortages. Management indicated that Auto may not rebound until the second half 2022. Nonetheless, all other categories are growing nicely, including a large emerging ad category, Sports Betting …
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
