Yahoo Finance The E.W. Scripps Company (NASDAQ:SSP) Q1 2024 Earnings Call Transcript
The E.W. Scripps Company (NASDAQ:SSP) Q1 2024 Earnings Call Transcript May 10, 2024
The E.W. Scripps Company isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Thank you, everyone, for standing by and welcome to the Scripps Q1 Earnings Conference Call. Now at this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Instructions will be given at that time. I will now turn the call over to your host, Head of Investor Relations, Carolyn Micheli. Please go ahead.
Carolyn Micheli: Thank you, Kevin. Good morning, everyone, and thank you for joining us for a discussion of The E.W. Scripps Company's financial results and business strategies. You can visit scripps.com for more information and a link to the replay of this call. A reminder that our conference call and webcast include forward-looking statements and that actual results may differ. Factors that may cause them to differ are outlined in our SEC filings. We do not intend to update any forward-looking statements we make today. Included on this call will be a discussion of certain non-GAAP financial measures that are provided as supplements to assist management and the public in their analysis and valuation of the company. These metrics are not formulated in accordance with GAAP and are not meant to replace GAAP financial measures and may differ from other companies' uses or formulations.
Included in our earnings release are the reconciliations of non-GAAP financial measures to the GAAP measures reported in our financial statements. We'll hear first this morning from Scripps' Chief Financial Officer, Jason Combs, who will share financial results as well as color on the Scripps advertising marketplaces; then we'll hear from President and CEO, Adam Symson. Now here's Jason.
Jason Combs: Good morning, everyone, and thank you for joining us. We are pleased to be delivering first quarter 2024 operating results that beat profit estimates driven by tight cost controls. I will discuss both our Q1 results and guidance for Local Media first and then the results and guidance for Scripps Networks. Then I'll touch on a few other guidance items. I'll conclude with capital allocation and our debt picture. For the first quarter 2024, Local Media division revenue was up 13% from the year ago period due to year-over-year growth in political and distribution revenue. The political revenue, which was $15 million, saw strength from early U.S. Senate spending in Montana and Ohio. Local distribution revenue was up more than 20% again this quarter, fueled by 2023 renewals of our cable and satellite agreements.
We also saw positive performance in our subscriber numbers. Our total pay TV subscriber count was up nearly 1% in the most recent quarter of data we've received. And on a trailing 12-month basis, our pay TV subscriber count is down mid single-digits, in line with the trend we've experienced the last several years. First quarter local core advertising revenue was down about 3% from the prior year period. Strong categories included automotive, up 6% and home improvement, up 5%. Services ended the quarter down slightly but ended April up by double-digits. Overall, core revenue from local businesses was up slightly for the quarter, while national advertising was down largely due to sports betting declines. Local Media expenses increased about 8% from the prior year quarter, inclusive of our new sports rights agreements.
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