E.W. Scripps faced a fourth-quarter loss as a result of a significant impairment charge linked to the slow recovery of national television advertising, which ultimately erased earnings.
Quarter Results
The Cincinnati, Ohio-based broadcaster reported a loss of $255.8 million, or $3.17 per share, compared to a profit of $85.5 million, or 84 cents per share, from the previous year.
The quarter’s loss was primarily due to a $266 million impairment charge tied to the sluggish recovery of the national TV advertising market, which caused results to miss expectations.
Revenue and Expectations
Despite a 10% drop in revenue to $615.8 million, exceeding analysts’ expectations of $602 million, there were some bright spots. The local media unit experienced a more than 12% decrease in revenue, while Scripps Networks saw a 7% increase.
Core advertising revenue excluding political advertising, showed promising growth with a 1% rise in the local media unit and a significant 22% increase in local media distribution revenue reaching $196 million.
Future Outlook
CEO Adam Symson remains optimistic as core advertising categories display growth in February, with plans to expand the distribution model. Looking ahead, E.W. Scripps projects a low-teens percentage increase in local media revenue for the current quarter, while Scripps Networks revenue is expected to remain flat or decline by a low-single-digit percentage.
Symson highlighted the company’s aggressive approach towards advancing its datacasting business model, with anticipation of generating revenue within the year.
It seems E.W. Scripps is navigating through challenges with strategic decisions aimed at long-term success and development.