Shanna Qiu

Shanna Qiu requested additional details on the proceeds and economics of the Court TV sale, and whether Scripps plans to divest other assets. She also asked for clarification on the softer-than-expected Q1 Scripps Networks revenue guidance (down high singles), questioning if it was due to ad dollars diverted by the Super Bowl and Olympics or increased competition from FAST channels.

Answer

Jason Combs (CFO) expressed satisfaction with the Court TV sale but did not disclose specific financial terms, noting it included upfront cash and a long-term distribution agreement. Adam Symson (President and CEO) broadly stated that Scripps would continue to explore M&A opportunities, particularly in Local Media, to divest non-core assets at premium multiples for improved operating performance and balance sheet strength. Regarding the Q1 Scripps Networks guidance, Jason Combs attributed the 'down high singles' to three factors: a negative comparable due to the Court TV sale (5 weeks revenue vs. full quarter prior year), weakness in direct response (DR) pricing influenced by macroeconomic factors, and a generally weaker upfront last year (outside of sports programming) impacting current P&L. He noted strong upfront performance for sports properties, expected to benefit Q2. Adam Symson acknowledged the proliferation of FAST channels but asserted Scripps' channels are premium and expect continued double-digit growth.

Shanna Qiu asked for additional color on the proceeds from the Court TV sale, including any economics or multiples, and whether Scripps is looking to sell any other assets like Court TV. She also inquired about the softer-than-expected Scripps Networks Q1 guidance, considering positive commentary on political and CTV advertising, and if it was due to live sports diverting ad dollars or increased competition in FAST channels.

Answer

CFO Jason Combs stated that specific financial terms for the Court TV sale were not disclosed, but it included cash consideration and a long-term distribution agreement. President and CEO Adam Symson added that Scripps will continue to look for opportunities to sell non-core assets in Local Media for premium multiples. Jason Combs explained the Q1 Networks guide was impacted by the Court TV comp issue, weakness in DR pricing, and a generally weaker upfront outside of sports programming, but noted strong performance in sports properties. Adam Symson affirmed that despite more FAST channels, Scripps' premium channels and distributor partnerships mean they don't expect growth to abate.