The E W Scripps Co (NASDAQ:SSP) reported Q3 2023 revenue of $567 million, a decrease of 7.4% from the prior-year quarter.
The company posted a segment profit of $97.5 million, with a loss attributable to shareholders of $16.2 million or 19 cents per share.
Scripps Networks' third-quarter revenue was down 8%, exceeding guidance due to better-than-expected connected TV and direct response revenue.
The company successfully completed cable and satellite carriage agreements covering about 75% of the companys Local Media subscriber households.
On November 3, 2023, The E W Scripps Co (NASDAQ:SSP) released its Q3 2023 financial results. The company reported a revenue of $567 million and a segment profit of $97.5 million. However, the loss attributable to the shareholders of Scripps was $16.2 million or 19 cents per share. The company's restructuring costs for the quarter accounted for 4 cents of the per-share loss.
Company Performance and Financial Highlights
The E W Scripps Co (NASDAQ:SSP) successfully completed cable and satellite carriage agreements covering about 75% of the companys Local Media subscriber households. These renewals expanded the number of stations on which Scripps is paid a distribution fee, thereby growing revenue and expanding distribution margins.
Scripps Sports signed a new agreement with the National Hockey Leagues Arizona Coyotes to distribute its games beginning this season. Initial game ratings and advertising demand have been strong. However, Scripps Networks third-quarter revenue was down 8%, exceeding guidance because of better-than-expected connected TV and direct response revenue.
Restructuring charges for the third quarter were nearly $5 million, which included employee severance-related charges, operating lease impairment charges, and reorganization consulting fees. The company is on track to realize at least $40 million in savings through the reorganization by the middle of 2024.
Financial Condition and Future Outlook
As of September 30, 2023, the company's cash and cash equivalents totaled $15.9 million, and total debt was $3 billion. During the first nine months of 2023, the company made mandatory principal payments of $13.2 million on its term loans.
Looking ahead to 2024, the company anticipates a number of drivers to catalyze free cash flow growth, including further significant growth in its networks CTV revenue, the annualization of this years local distribution deals, the continued expansion of Scripps Sports strategy, and the return of a strong advertising marketplace.
This was a big year for Scripps in testing the strength of the local broadcast distribution revenue ecosystem, and we are exceedingly pleased with the results. As we look ahead to 2024, we anticipate a number of drivers to catalyze free cash flow growth," said Scripps President and CEO Adam Symson.
Explore the complete 8-K earnings release (here) from The E W Scripps Co for further details.
This article first appeared on GuruFocus.