Scripps sees lower political ad revenue, tackles debt in Q3

The E.W. Scripps Company posted a $49 million loss in its third quarter as the absence of political advertising revenue exposed the broadcaster’s ongoing efforts to stabilize its financial position through cost cuts, station sales and strategic refinancing.

The company reported $526 million in revenue for the quarter ending Sept. 30, down 19% from the same period in 2024 when political advertising injected $125 million into its coffers. This year, political revenue totaled just $5.1 million. The loss translates to 55 cents per share, compared to a $33 million profit in the prior-year quarter.

Still, CEO Adam Symson struck an optimistic note, pointing to three consecutive quarters of meeting or exceeding Wall Street expectations and progress on debt reduction.

“All of these financial milestones should serve as clear evidence that our short-term performance improvement and near-term growth strategies we have been executing, many of them unique among local broadcast groups, are working,” Symson said in a statement.

The company reduced expenses by more than 4% in its Local Media division and 7.5% in Scripps Networks during the quarter, with employee costs declining in both segments. The Networks division maintained flat revenue at $201 million while expanding its profit margin to 27%.

Connected TV revenue grew 41% as Scripps capitalized on broad distribution across streaming platforms, helping offset what the company described as “softness due to economic uncertainty.”

The Local Media division saw core advertising revenue increase 1.8% to $132 million, driven by the services category and national advertising growth. Scripps attributed the gains to what it called “strong sales execution” and its sports strategy, which includes a new agreement with the NHL’s Tampa Bay Lightning.

Scripps recently announced the sale of two stations, WFTX in Fort Myers and WRTV in Indianapolis, for a combined $123 million.

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The transactions follow a July announcement of station swaps with Gray Media across five markets in four states. The company framed these moves as part of a broader strategy to improve operating performance and reduce debt.

In August, Scripps closed on $750 million in new senior secured second-lien notes at 9.875%, using proceeds to pay off its 2027 senior notes, reduce its 2028 term loan by $205 million, and pay down revolving credit facilities. Net leverage stood at 4.6 times at quarter’s end, down from 4.9 times at the end of the first quarter.

As of Sept. 30, the company held $54.7 million in cash against $2.7 billion in total debt. Scripps did not pay any 2025 quarterly preferred stock dividends, with undeclared and unpaid cumulative dividends totaling $101 million. Under terms of Berkshire Hathaway’s preferred equity investment, Scripps cannot pay common dividends or repurchase shares until all preferred shares are redeemed.

The WNBA season on ION delivered a bright spot, with linear and connected TV revenue growing 92% over the 2024 season despite the absence of Caitlin Clark due to injury. Scripps reported strong demand for women’s sports programming in this year’s upfront cycle, with sports volume up 30% and commanding premium advertising rates.

Looking to the fourth quarter, Scripps expects strong core revenue growth, bolstered by the Lightning partnership, continued growth across live sports markets, and easier year-over-year comparisons after political advertising displaced core advertising in the prior year.