The E.W. Scripps Company

Second quarter revenue figures were $317 million for Local Media, down 1% year over year, and $172 million for Scripps Networks, down 13% year over year. Local Media core advertising fell 4.8%, distribution revenue declined 13% to $161 million, and political advertising was $28 million, which management called a record second-quarter result. Local Media segment profit was $56 million versus $51 million a year ago; Scripps Networks segment profit was $26 million versus $57 million a year ago. The company reported a loss of $12.68 per share, including a $1.1 billion noncash impairment charge, $36 million of restructuring costs, a $9 million gain from Gray swaps, and a $0.18 per-share preferred dividend impact. For the third quarter, management expects Local Media revenue up about 20%, core advertising down low double digits, Networks revenue down in the mid-teens, Local Media expenses down low single digits, Networks expenses up low single digits, and corporate/shared services expense around $25 million. Full-year political advertising is guided to $225 million to $250 million, gross distribution revenue is expected to be down in the low single digits, net distribution revenue up in the mid to high single digits, the company now expects a net tax refund of about $5 million, CapEx of $50 million to $60 million, and $100 million in annualized run-rate savings by year-end.

Adam Symson framed the quarter as strategically important even though results were below his expectations. He emphasized live sports, local duopolies, spectrum optimization, and local-news transformation as the core of Scripps' future, repeatedly pointing to AI, automation, and new news-stream products as part of a “revolution” in how the company operates. His tone was confident and forceful on regulation, M&A, and spectrum value, while acknowledging the quarter was pressured by Nielsen changes, linear viewing declines, the ad market, and carriage blackouts.

Jason Combs led with the numbers and guidance updates: Local Media revenue was $317 million, Networks revenue was $172 million, segment profits were $56 million and $26 million respectively, and the company reported a $12.68 per-share loss. He said the company now expects $100 million in annual run-rate savings by year-end, up 33% from prior guidance, and reduced CapEx to $50 million to $60 million; he also noted a net tax refund of about $5 million. On the balance sheet, he said Scripps ended the quarter with $13 million in cash, no revolver borrowings, net debt of $2.2 million as defined in the credit agreement, and a newly extended revolving credit facility through July 2029 with $200 million of total capacity.

Analysts focused on the size of the Nielsen impact, the outlook for retrans/net distribution next year, and whether management’s transformation and M&A moves change the company’s longer-term strategic options. Management said roughly 50% of the network revenue pressure was due to Nielsen’s methodology change, that no upside from a fix is in guidance yet, and that the company expects changes to begin in September but is being conservative until they are live. On distribution, Jason corrected an earlier comment and said only about 5% of subs reset in 2028 is next year, while Adam said all affiliation agreements are locked in. Questions also probed whether the family might sell the company; Adam said he cannot speak for the controlling shareholder but reiterated that management sees continued opportunities in swaps, divestitures, acquisitions, and transformation, with no indication of a near-term sale.