SSP · The E.W. Scripps Company

The E.W. Scripps Company reported first-quarter 2026 revenue of $517 million, a 1.4% decline from the prior year, driven by an 11% drop in Scripps Networks revenue to $176 million despite expense reductions, partially offset by 5% growth in Local Media revenue to $342 million. Local Media benefited from 5.8% higher core advertising to $140 million, fueled by NHL team agreements, Winter Olympics, and Super Bowl, plus political advertising rising to $9 million from $3.3 million amid midterm elections. Segment profit in Local Media rose to $46.7 million from $34.9 million, while Scripps Networks profit fell to $46.3 million from $64.1 million. The GAAP net loss of $18 million or $0.20 per share improved slightly from $18.8 million or $0.22 per share, aided by a $30 million gain from sales of Court TV, WFTX, and WRTV, which reduced the loss by 25 cents per share. Adjusted combined results show Local Media core advertising up 7% and segment profit up to $43.7 million. Balance sheet reflects $84 million cash, including WRTV sale proceeds, and $2.6 billion debt, with net leverage at 3.9x benefiting from pro forma transformation adjustments targeting $125-$150 million annualized EBITDA growth by 2028 via over 1,000 cost/revenue initiatives leveraging AI and automation. Key strategic moves include launching Scripps Sports Network, new NHL Nashville Predators rights starting 2026-27, station sales for $123 million proceeds, a pending $15.8 million WTVQ acquisition, and extending $200 million revolver maturity to 2029. Management highlights momentum from sports strategy, political revenue, and debt reduction plans using midterm ad proceeds, with no common dividends due to preferred stock restrictions. Q2 guidance indicates modest Local Media revenue growth and Networks decline, signaling ongoing transformation execution amid sports and election tailwinds.