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E.W. Scripps (NASDAQ: SSP) reported first-quarter 2026 results, with management saying the performance reflected progress on a broad transformation plan, stronger local advertising tied to live sports, and continued efforts to reduce debt through asset sales and portfolio actions.
Chief Financial Officer Jason Combs said the company’s net leverage improved to 3.9 times at quarter-end under its credit agreement, including certain pro forma adjustments tied to the transformation plan. He said Scripps is targeting $125 million to $150 million of enterprise EBITDA improvement through a mix of expense reductions and revenue growth initiatives.
Combs said the financial benefits of the plan are expected to show up more clearly in the second half of the year, projecting an in-year EBITDA impact of $20 million to $30 million and an annualized run rate of about $75 million heading into next year.
Scripps’ local media division generated first-quarter revenue of $331 million, up 5.8% from the year-earlier period on a same-station or adjusted combined basis. Core advertising revenue rose 7%, which Combs attributed largely to advertising sales tied to National Hockey League broadcasts.
The company said the addition of its rights agreement with the Tampa Bay Lightning contributed to the quarter, along with growth from existing NHL partnerships with the Vegas Golden Knights, the Utah Mammoth and the Florida Panthers. Scripps also announced a full-season NHL local broadcast agreement with the Nashville Predators beginning this fall.
Combs said the Winter Olympics and the Super Bowl also contributed to local core advertising growth in the quarter. Political advertising revenue was nearly $9 million as the company enters what it expects to be a strong midterm election cycle, with Senate and gubernatorial races in several Scripps markets, including Arizona, Colorado, Michigan, Nevada, Ohio and Wisconsin.
Local media distribution revenue increased 2% on a same-station basis. Segment expenses rose 2.4%, though Combs said expenses were flat excluding costs tied to the company’s new NHL team deal. Local media segment profit increased to $44 million from $32 million a year earlier.
For the second quarter, Scripps expects local media revenue to rise in the low single digits, while core advertising is expected to decline in the low single digits without live sports for most of the quarter. Combs said second-quarter gross distribution revenue will be affected by the company’s impasse with Comcast, which ran from March 31 to May 5.
Scripps still expects full-year gross distribution revenue to grow in the low single-digit range and now expects net distribution revenue to grow in the low double-digit range.
Scripps Networks revenue was $174 million in the first quarter, down 9.5% from the prior year on an adjusted combined basis that excludes the impact of the Court TV sale. Connected TV revenue rose 26%, but overall segment profit fell to $47.5 million from $66.8 million a year earlier. Expenses were $126 million, up 1%.
For the second quarter, the company expects Scripps Networks revenue to decline about 10% and expenses to rise in the low single digits. Combs said the segment is facing a softer market due to macroeconomic conditions affecting direct response advertising, as well as pressure from recent Nielsen methodology changes.
President and Chief Executive Officer Adam Symson said the Nielsen change “artificially shifted household viewership weighting in favor of cable networks” and negatively affected audience delivery for Scripps’ over-the-air networks. He said the company began seeing the revenue impact in March and has been advocating for Nielsen to disclose the magnitude of the discrepancy.
Symson said demand for Scripps’ advertising products remains solid in the general market, but the measurement change reduced the impressions the company had available to sell. Combs said direct response advertising can weaken quickly in periods of consumer and economic uncertainty but can also recover quickly.
Management emphasized live sports and connected TV as key parts of Scripps’ growth strategy. Symson said the company’s sports portfolio has helped drive local core advertising growth and is expanding nationally through women’s sports.
Scripps Sports is airing WNBA games on ION, including Friday night doubleheaders during the season. Symson said the April 25 preseason game between the Indiana Fever and New York Liberty was ION’s most-watched preseason game ever. He also highlighted rights for the WNBA, NWSL, Professional Women’s Hockey League, Major League Volleyball, Athlos track, college basketball, Pro Cheer and PBR’s Premier Women’s Rodeo.
In March, Scripps launched the Scripps Sports Network, a free streaming channel that uses existing sports rights, selected new rights and sports-themed programming. Symson said the channel will stream more than 100 live games annually, along with original programming, documentaries and talk shows, with distribution on platforms including Roku, LG and Samsung.
During the question-and-answer session, Symson said Scripps is using the streaming sports network to extend distribution for some ION programming and to test additional rights for emerging leagues. He also said the company sees further opportunity in connected TV advertising, including programmatic sales and political advertising outside Scripps’ traditional station markets.
Scripps reported a first-quarter loss of $0.20 per share. Combs said the result included a $30 million gain on the sales of Court TV and two television stations, WFTX in Fort Myers, Florida, and WRTV in Indianapolis, which reduced the loss attributable to shareholders by $0.25 per share. He said the preferred stock dividend reduced earnings per share by $0.18 even though it was not paid.
The company ended the quarter with $84 million in cash and cash equivalents and $2.2 billion in net debt as defined in its credit agreement. Scripps had $20 million outstanding on its revolving credit facility at quarter-end and said it extended the facility’s maturity date to July 7, 2029, with commitments of $200 million.
Combs said Scripps has paid down just over $60 million of term loan debt since the beginning of the year. The company generated $123 million in gross proceeds from recent station sales and continues to work toward closing station swaps with Gray, while also pursuing additional M&A activity to support debt reduction and operating performance. He also said Scripps completed a new affiliation agreement with ABC covering 17 affiliates.
Symson described the company’s transformation as a “refounding” of Scripps, focused on using technology, automation and artificial intelligence to improve efficiency and better serve audiences and advertisers. He said newsroom changes are moving Scripps from a broadcast-centric model toward operations that serve local news consumers across platforms, including streaming.
Combs said Scripps estimates $40 million to $50 million in costs to achieve the transformation plan, with the largest portion expected in the second half of this year. Symson said the company is “on track” to achieve the EBITDA improvement it outlined.
“At Scripps, we’re acting with urgency on what we can control by employing new technologies to create operational efficiencies, capitalizing on accessible growth areas such as sports and CTV, and improving our balance sheet,” Symson said.
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