Scripps Station Revenue Down 4.8% in 2Q

The E.W. Scripps Co., which on July 1 spun off its cable television networks and global interactive services businesses into a separate publicly traded company, today reported consolidated operating results for the second quarter of 2008.

The earnings report for the three-month and year-to-date periods ending June 30 includes results from the company's Scripps Networks and Interactive Media operating divisions, the two business segments that now comprise the Lifestyle Media and Interactive Services business segments of the newly created Scripps Networks Interactive Inc. (NYSE: SNI).

Scripps Networks Interactive will report operating results separately beginning with the third quarter of 2008. Its businesses will be classified by The E. W. Scripps Company as discontinued operations, also beginning with the third quarter.

Second-quarter revenue at the Scripps television station group was $80.5 million compared with $84.5 million during the same period a year earlier, a 4.8 percent decrease.

Second-quarter segment profit at the TV station group was $18.3 million vs. $23.5 million, year-over-year, a drop of 22.2 percent.

The company said the decline in revenue and segment profit at the television station group was attributable to generally weak local and national advertising sales, particularly in the automotive and retail categories.

Political advertising revenue during the quarter was $1.6 million compared with $400,000 during the same period in 2007. Political advertising revenue was weaker than expected due to the lack of primary campaign spending in Florida and Michigan. Year-to-date, political advertising revenue at the company's TV stations is about $4.7 million vs. $700,000 in the prior-year period.

Television group revenue broken down by category was:

• Local, down 7.0 percent to $50.4 million.
• National, down 7.6 percent to $23.8 million.
• Political, $1.6 million compared with $400,000in 2007.

Cash expenses for the television station group were $62.2 million, up 1.9 percent from the prior year.

Television station group segment profit was $18.3 million compared with $23.5 million in the prior year period.

For the company as a whole, second-quarter revenue increased 3.8 percent to $664 million compared with the same period a year ago.

The company's second-quarter net income was $51.2 million, or 94 cents a share, compared with $97.5 million, or $1.78 a share, for the same period in 2007. Reported earnings per share reflect the one-for-three reverse stock split that became effective on July 16 for The E. W. Scripps Co. Shares of Scripps Networks Interactive were not affected by the reverse stock split. 

To read the company's press release, click here.