E.W. Scripps Slips To Loss In Q3 On Lower Revenues

(RTTNews) - Media company E.W. Scripps Co. (SSP) on Friday reported a loss for the third quarter, reflecting lower revenues at its television as well as newspaper segments. Political advertising revenues fell 97 percent from last year.

Consolidated revenue for the quarter missed analysts' expectations. However, the company recorded its first subscription revenue increase at the newspaper segment since the fourth quarter of 2010.

Looking ahead, E.W. Scripps forecast lower revenue at its television as well as newspaper segments for the fourth quarter and fiscal 2013, but projects subscription revenues for the fourth quarter to increase low single digits. The company's shares are down more than 11 percent in the regular trading session.

The Cincinnati, Ohio-based company reported net loss for the third quarter of $8.85 million or $0.16 per share, compared to net income of $12.00 million or $0.21 per share in the year-ago period. On average, analysts polled by Thomson Reuters expected the company to report loss of $0.06 per share for the quarter. Analysts' estimates typically exclude special items.

The company noted that its tax expense for the prior-year quarter included $3.7 million or $0.07 per share in favorable adjustments to the reserve for prior-year income taxes.

Consolidated revenues for the latest quarter declined 14 percent to $189.54 million from $219.64 million in the prior-year quarter. Analysts had a consensus revenue estimate of $197.09 million for the quarter.

The company's revenue from television stations declined 21 percent from the year-ago period to $99.29 million. In this off-cycle period, political advertising revenues fell 97 percent from last year to $1.04 million. The prior-year period included $36 million of political revenue as well as incremental 2012 Summer Olympics advertising on the company's three NBC-affiliated stations.

Excluding the cyclical political revenue from both years, television revenues rose 8 percent, boosted by a 40 percent increase in retransmission fees from cable and satellite operators. Digital revenue increased 6 percent to $4.28 million.

Revenue from newspapers for the quarter declined 4 percent to $88.35 million, but was offset slightly by the first subscription revenue increase since the fourth quarter of 2010.

Advertising and marketing services revenues at the newspaper segment declined 8 percent, while subscription revenue increased 1 percent due to the company's new digital and print bundled subscriptions as well as an increase in single-copy prices in some markets.

E.W. Scripps said it completed the rollout of digital and print subscription bundles in all thirteen of its newspaper markets, which, combined with targeted price increases, led to an upswing in newspaper subscription revenue in the third quarter.

Looking ahead to the fourth quarter, E.W. Scripps forecasts television revenues to be down mid-twenties, while newspaper revenues and expenses are expected to decline at a low-to-mid-single-digit rate, with the decline in expenses being greater than the decline in revenues. However, the company projects subscription revenues to increase low single digits in the quarter.

For fiscal 2013, E.W. Scripps forecasts television revenue to be down mid-teens and newspaper revenues to be down mid-single-digits.

In Friday's regular trading session, SSP is trading at $16.81, down $2.15 or 11.34 percent on a volume of 562,198 shares.