Scripps(SSP)2025-03-12 19:34Financial Performance - The E.W. Scripps Company achieved 20 million realized by the end of 2023[17]. - Political advertising revenues accounted for 20% of the Local Media segment's revenues in 2024, benefiting from the election year[34]. - Distribution revenues represented 46% of the Local Media segment's revenues in 2024, with renewal negotiations covering approximately 75% of subscriber households completed in 2023[36]. - Core advertising revenues made up 33% of the Local Media segment's revenues in 2024, driven by local and national business sales[29]. - Employee costs constituted 38% of the Local Media segment's costs and expenses in 2024[37]. - Programming costs, including network affiliation fees and local sports rights fees, accounted for 45% of the Local Media segment's costs and expenses in 2024[39]. - Revenue from advertising is subject to seasonality, with higher revenues typically in the second and fourth quarters due to increased demand[46]. Strategic Initiatives - Scripps News will significantly reduce its national network programming starting in Q4 2024, expected to generate annualized net savings of 6.4 million for a 25% ownership interest to provide data delivery services[21]. - Scripps continues to expand its presence in the connected television marketplace, leveraging its leadership in the over-the-air market[16]. Programming and Audience Reach - Scripps Networks segment generates revenue primarily from advertising sales, which depend on viewership ratings and advertising rates[45]. - Programming expenses accounted for 55% of Scripps Networks segment's costs and expenses in 2024, reflecting investment in quality programming and distribution costs[47]. - ION network is available in nearly 99% of U.S. television broadcast homes and has the fifth-largest average prime-time audience among all broadcast networks[48]. - Bounce network reaches approximately 95% of U.S. television broadcast homes, featuring original programming and a focus on the African American community[49]. - Court TV is available in about 93% of U.S. television broadcast homes, providing live coverage and analysis of significant trials[50]. - Grit network appeals to male viewers and is available in approximately 98% of U.S. television broadcast homes[51]. - ION Mystery and ION Plus are available in about 98% and 92% of U.S. television broadcast homes, respectively, featuring popular crime and action programming[52][53]. - Laff network targets comedy lovers aged 18 to 49 and is available in approximately 98% of U.S. television broadcast homes[54]. - Scripps News focuses on objective reporting and is available on multiple streaming platforms after ceasing over-the-air distribution in November 2024[55]. - Scripps' current national audience reach is 38.0% of television households after applying the UHF discount[61]. Employee Relations and Development - As of December 31, 2024, Scripps had approximately 5,000 employees, including full-time and part-time[72]. - The company has not experienced any work stoppages at its current operations since 1985[72]. - Scripps offers a voluntary Employee Stock Purchase Plan (ESPP) allowing employees to purchase company stock at a discounted price[76]. - Scripps prioritizes flexible and impactful learning and development opportunities for employees to support their growth[78]. - In 2024, employees completed training courses tailored to specific roles, focusing on competencies critical to future success[78]. - Leadership programs are designed to cultivate effective leaders at all levels, enhancing team performance and employee engagement[79]. - Targeted training in key areas such as journalism and sales combines hands-on learning and mentorship to enhance job-specific skills[80]. - Scripps emphasizes open communication with employees through various channels, including emails, videos, and town hall meetings[82]. - Employees are encouraged to engage in their local communities through reporting, fundraising, and volunteering efforts[82]. Regulatory and Compliance - The FCC's rule changes regarding television ownership went into effect in March 2024, impacting Scripps' operations[60]. - All Scripps stations completed the transition to new channels in the reduced broadcast spectrum band following the 2017 incentive spectrum auction[63]. - The FCC requires television broadcasters to close caption their programming for the benefit of persons with hearing impairment[58]. - Scripps has never had a broadcast license revoked and all previous renewals have been for the maximum term[59]. - The Low Power Protection Act allows certain low-power television stations to apply for "Class A" regulatory status, effective May 31, 2024[66]. - The FCC's new ownership rules, effective March 2024, prohibit broadcasters from using multicast channels to acquire two "top-four" affiliations in a single market[60]. - Scripps stations are operating with the new ATSC 3.0 transmission protocol, which allows for enhanced services and improved signal reception[64]. - The FCC's rules implementing the Low Power Protection Act went into effect on May 31, 2024, allowing eligible low-power stations to apply for "Class A" status[66]. - Scripps has elected to negotiate retransmission consent agreements with cable operators and satellite video providers for the majority of its stations[67]. - The FCC has increased enforcement efforts regarding programming issues, which may impact Scripps' operations[69]. Compensation and Benefits - Scripps' compensation philosophy includes a combination of fixed and variable pay, including base salary, bonuses, and share-based compensation[75]. - The company offers a comprehensive benefits package, including medical, dental, vision coverage, and a 401(k) plan[76].