Scripps reports Q4 2024 financial results

Core Insights - The E.W. Scripps Company reported $728 million in revenue for Q4 2024, an 18% increase year-over-year, primarily driven by record political advertising revenue [6][10] - The company achieved an income attributable to shareholders of $80.3 million, or 92 cents per share, compared to a loss of $268 million in the prior-year quarter [7][24] - Scripps is focused on debt reduction, achieving a leverage ratio of 4.8x at year-end 2024, down from 5.7x at year-end 2023 [3][9] Financial Performance - Q4 2024 revenue was $728 million, up $113 million from the previous year, with segment expenses slightly decreasing to $502 million [6][23] - Political advertising revenue reached $174 million, a significant increase from $16.4 million in the prior-year quarter, while core advertising revenue decreased by 11% to $147 million [10][31] - The Scripps Networks segment saw a revenue decline of 6.1% to $216 million, with segment profit decreasing to $60.7 million [12][31] Segment Analysis - Local Media segment revenue was $511 million, a 34% increase from the prior-year quarter, with segment profit rising to $198.8 million [8][31] - Scripps Networks segment expenses decreased by 6.3% to $155 million, but the segment's profit also declined by 5.5% [12][31] - The company anticipates a margin improvement of 400-600 basis points in the Scripps Networks division for 2025 [4] Debt and Financial Strategy - The company has entered into agreements to refinance debt, extending the maturity of its term loans and revolving credit facilities [9] - Cash and cash equivalents at year-end totaled $23.9 million, with total debt at $2.6 billion [13][34] - The company did not declare or pay any preferred stock dividends in 2024, allowing for greater flexibility in debt reduction [14] Industry Outlook - Scripps anticipates regulatory changes in the local broadcast environment under new FCC leadership, which may enhance economic growth opportunities [5] - The company is committed to improving its operating performance and deepening community connections to unlock shareholder value [5]