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E.W. SCRIPPS Co (SSP)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue of $524.4M and diluted EPS of $(0.22) both beat Wall Street consensus; revenue topped by ~$4.2M and EPS by ~$0.04, with Adjusted EBITDA of $75.6M supported by 16% y/y Networks expense cuts and 32% Networks margin, the highest since Q4 2022 . Consensus (S&P Global): revenue $520.2M*, EPS $(0.255), EBITDA $63.3M.
  • Local Media softness (core -3.1% y/y; political $3.3M vs $15.2M) and retrans sub pressure (-mid‑single‑digit pace) offset by Networks strength (CTV +42% y/y) and tight cost control .
  • Balance sheet de‑risked: April 10 refinancing extended maturities (new $545M TL due 2028, $340M TL due 2029, $208M revolver due 2027, $70M short revolver due 2026) and added up to $450M AR facility; net leverage 4.9x at Q1-end with continued deleveraging prioritized .
  • Q2 2025 outlook: Local Media revenue down high single digits; Networks revenue about flat with expenses down low double‑digits; shared services/corporate ~$22M. Distribution revenue expected “about flat” in Q2 and for full-year despite sub declines—reflecting completed renewals covering ~25% of households .

Values marked with “*” are consensus from S&P Global.

What Went Well and What Went Wrong

  • What Went Well

    • Networks delivered 32% margin (highest since Q4 2022) on 16% lower expenses y/y; CTV revenue grew 42% y/y, aided by ION’s women’s sports franchises and strong sales execution .
    • Refinancing materially extended maturities with <1% increase in blended debt cost; no amounts remain on prior 2026/2028 term loans or prior revolver; new AR facility up to $450M enhances liquidity .
    • Management executed real estate monetization ($63M cumulative) and reiterated deleveraging focus; net leverage improved to 4.9x at Q1-end .

  • What Went Wrong

    • Local Media facing macro/advertiser hesitancy (tariffs, inflation), with core ads -3.1% y/y and political $3.3M vs $15.2M last year; segment profit fell to $34.9M from $65.6M .
    • Retrans subs continue to decline mid‑single digits; though renewals help stabilize revenue, sub pressure persists; Q2 Local Media revenue guide down high single digits .
    • Preferred dividends continue to accrue (undeclared/unpaid cumulative $70.6M; 9% compounding), restricting common dividends/buybacks until redemption; diluted EPS includes an $0.18 headwind from preferred this quarter .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenue ($M)$646.3 $728.4 $524.4
Diluted EPS ($)$0.37 $0.92 $(0.22)
Operating Income ($M)$121.8 $191.6 $27.5
Adjusted EBITDA ($M)$176.8 $229.3 $75.6
Adjusted EBITDA Margin (%)27.4% (calc from )31.5% (calc from )14.4% (calc from )

Estimates vs Actuals (S&P Global consensus)

MetricQ1 2025 ActualQ1 2025 Consensus*Beat/(Miss)
Revenue ($M)$524.4 $520.2*+$4.2
Diluted EPS ($)$(0.22) $(0.255)*+$0.035
EBITDA ($M)$75.6 (Adj.) $63.3*+$12.3

Values marked with “*” are consensus from S&P Global.

Segment breakdown (Q1 2025 vs Q1 2024)

SegmentQ1 2024Q1 2025YoY
Local Media – Core Advertising ($M)$136.4 $132.1 (3.1%)
Local Media – Political ($M)$15.2 $3.3 (78.5%)
Local Media – Distribution ($M)$197.5 $187.2 (5.2%)
Local Media – Total Revenue ($M)$352.8 $325.4 (7.8%)
Local Media – Segment Profit ($M)$65.6 $34.9 (46.7%)
Scripps Networks – Total Revenue ($M)$209.3 $198.0 (5.4%)
Scripps Networks – Expenses ($M)$159.6 $133.9 (16.1%)
Scripps Networks – Segment Profit ($M)$49.7 $64.1 +29.1%

KPIs and Balance Sheet

KPIQ1 2025
CTV revenue growth (y/y)+42%
Networks margin32% (highest since Q4 2022)
Net leverage4.9x at Q1-end
Cash and Equivalents$24M
Total Debt$2.6B
Real estate sale proceeds (cumulative)$63M (late ’24–early spring)
Preferred cumulative undeclared dividends$70.6M (9% compounding)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Local Media revenueQ2 2025—Down high single-digit % New
Local Media expenseQ2 2025—Up low single-digit % New
Scripps Networks revenueQ2 2025—About flat New
Scripps Networks expenseQ2 2025—Down low double-digit % New
Shared services & corporateQ2 2025—About $22M New
Distribution revenueQ2 2025 / FY2025—About flat (Q2 and FY) despite sub declines New
Interest paidFY 2025$175–$185M (3/12 guide) $175–$185M (no update)Maintained
Capital expendituresFY 2025$55–$60M (3/12 guide) $55–$60M (no update)Maintained
Cash taxesFY 2025$25–$30M (3/12 guide) $25–$30M (no update)Maintained
D&AFY 2025$150–$160M (3/12 guide) $150–$160M (no update)Maintained

Earnings Call Themes & Trends

TopicQ3 2024 (Q-2)Q4 2024 (Q-1)Q1 2025 (Current)Trend
Women’s sports strategyWNBA drove double revenue y/y; >75% of sports inventory sold in upfront Margin expansion plan; sports pricing >2x non‑sports on ION; 2025 setup NWSL/WNBA driving CTV and linear; high scatter pricing; more properties added (SI Women’s Games, Fort Myers Tip‑Off) Strengthening
Connected TV monetizationCTV flat ex‑programmatic; pricing pressure from streaming CTV re‑accelerating; Q4 +16% ex‑programmatic CTV +42% y/y; key growth vector Improving
Macro/tariffs impact—Caution on macro into Q1 Advertiser hesitancy tied to tariffs; auto/retail weak Persistent headwind
Regulatory/deregulation—Expect FCC ownership relief; position to transact/swaps/sales FCC changes seen as a tailwind; potential to own more ION transmitters, improve leverage vs networks/VMVPDs Building optionality
Retrans/distributionSubs down mid‑single digits; gross/net retrans up LSD for 2024 Renewals pending in 2025; subs down MSD trend modeled ~25% of HHs renewed; Q2 & FY retrans about flat Stabilizing revenue despite sub pressure
Debt/deleveragingLeverage to 5.1x in Q3; paydown ~$300M in 2024 Refi commitments announced Mar 11; leverage 4.8x YE Refi closed Apr 10; blended cost +<1%; leverage 4.9x at Q1 Risk reduced
EdgeBeam (ATSC 3.0 JV)—JV launch context and TAM; not modeling revenue in 2025 CEO hiring near; initial revenue possible but not material in 2025 Early option value

Management Commentary

  • “We’re reporting first quarter results today that outperform financial expectations…we exceeded our expectations on Scripps [Networks] margin improvement, delivering 870 bps of improvement for the quarter” — CFO Jason Combs .
  • “Disciplined expense management, combined with effective advertising sales execution led to our highest margins in the division since the fourth quarter of 2022 at 32%.” — CFO Jason Combs .
  • “We completed [debt] refinancing…only increase our blended cost of debt by less than 1%…positioned us well for the near term with a clear runway through mid‑2027.” — CFO Jason Combs .
  • “We expect industry deregulation to be a tailwind…Greater broadcaster national scale and in‑market depth will power new economic growth.” — CEO Adam Symson .
  • “Advertisers will flock to the most valuable and most premium inventory…validation of our investment in women’s sports…our visibility is clear. There’s not much left.” — CEO Adam Symson .

Q&A Highlights

  • Deregulation strategy: Scripps expects to pursue swaps/select asset sales to optimize portfolio; believes owning more ION distribution post‑rule changes would lift Networks margins .
  • Networks visibility/margins: ~low‑80% Q2 revenue already committed; Q1 32% margin not a new run‑rate but above guided 400–600 bps improvement target for 2025 first half .
  • Category commentary: Auto down low‑teens; retail mid‑single‑digits; services/home improvement more stable; sports lifted April pacing across top categories .
  • Retrans/subs: Subs down mid‑single digits; expects “about flat” retrans in Q2 and full-year post renewals .
  • Balance sheet: Revolver draw used at refi close; aim to pay down by year‑end, not necessarily by Q2 .

Estimates Context

  • Revenue beat: $524.4M actual vs $520.2M consensus* (+$4.2M). EPS beat: $(0.22) vs $(0.255)* (+$0.035). 5 revenue estimates and 4 EPS estimates contributed to consensus* . Values retrieved from S&P Global.
  • Implications: Modest top‑line and EPS beats, with upside driven by Networks margin expansion and CTV growth. Given Q2 guide (Networks revenue flat, expenses down LDD), Street may raise Networks profit trajectory while trimming Local Media on macro and auto/retail pressure .

Values marked with “*” are consensus from S&P Global.

Key Takeaways for Investors

  • Mix shift is working: Networks margin expansion (+870 bps) and CTV growth (+42% y/y) are offsetting cyclical Local Media softness; Q2 setup (flat Networks revenue, LDD expense down) supports further profit mix resilience .
  • De‑risked capital structure: April refi extends maturities to 2028/2029, adds sizable AR facility, and keeps blended cost impact <1%; deleveraging remains top priority (4.9x at Q1) .
  • Retrans stabilizer: Despite mid‑single‑digit sub declines, renewals covering ~25% of HHs support “about flat” retrans in Q2 and full‑year—a key underpin for Local Media cash flows .
  • Sports as a pricing and inventory engine: Women’s sports on ION is largely sold out with premium scatter; expect Q2/Q3 uplift as WNBA/NWSL seasons run, and new Q4 properties extend the women’s sports window .
  • Policy optionality: Potential FCC deregulation could catalyze portfolio optimization (swaps/sales), VMVPD negotiating leverage, and improved Networks margins via greater ION station ownership .
  • Watchlist near term: Auto/retail ad trends (sensitivity to tariffs), execution of upfront, and Networks expense discipline vs sports rights step‑ups .
  • Trading lens: Bias to positive on continued Networks outperformance and leverage reduction; tactically monitor Q2 Local Media trajectory and any regulatory headlines as catalysts .

Appendix: Additional Reference Data

Balance sheet and financing

  • Cash and equivalents $24M; total debt $2.6B at 3/31; new TLs: $545.2M due 2028, $340.2M due 2029; new revolver $208M due 2027 + $70M short revolver due 2026; new AR facility up to $450M .
  • Preferred dividends deferred; cumulative undeclared $70.6M; 9% compounding; common dividends/buybacks prohibited until preferred redeemed .

Quarterly operating detail (Local Media vs Networks) provided in Financial Results tables above .

All document-based facts sourced to company filings, press releases, and transcripts as cited. Values marked with “*” are consensus from S&P Global.