The E.W. Scripps Co. reported a first-quarter loss as profits fell at both its local media and national networks units.
The first-quarter loss was $31.1 million, or 37 cents a share. Restructuring costs accounted for $16.5 million, or 15 cent per share, of the loss.
Revenue fell 6.7% to $528 million.
At the Scripps Local Media unit, segment profit fell to $45.8 million from $54.4 million a year ago as revenues dropped 4.5% to $312 million.
Core advertising revenue was down 10% to $141 million and distribution revenue increased 2.4% to $163 million.
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At Scripps Networks, segment profit fell to $51.5 million from $85.1 million a year ago. Revenue fell 9.5% to $216 million. The company said the drop reflected continued weakness in the national advertising marketplace.
“Despite the ongoing macroeconomic challenges, Scripps had several bright spots in our first-quarter financial results,” said CEO Adam Symson.
”First, as we renew the majority of our pay TV subscriber households this year, we saw a 1% sequential increase in subscriber households in our most recent reporting period. Second, we continue to maintain strong partnerships with both legacy and virtual pay TV services as they recognize the value created for them by local stations. Third, we also are benefitting from the rise in connected TV viewing now that our Scripps Networks are carried by all the major players. Being distributed on cable, satellite, virtual MVPDs, CTV and over the air is Scripps’ all-of-the-above strategy to create enterprise value on every viewing platform.”
Symson also noted that the company was scoring with sports leagues and teams seeing value in broadcast.
“In the short time since we launched Scripps Sports, we are very pleased to have already announced two significant deals — the creation of the WNBA Friday Night Spotlight on Ion and an exclusive local distribution partnership with the National Hockey League’s Vegas Golden Knights,” Symson said. “Live sports is the most valuable content genre in linear television, and we established Scripps Sports to work with leagues and teams to leverage the power of our platform for mutual financial benefit. We are taking a disciplined approach to the marketplace and look forward to more partnerships ahead.”
