E.W. Scripps Falls To Loss In Q2 - Update

(RTTNews) - Media company E.W. Scripps Co. (SSP) Friday reported a loss for the second quarter compared with a profit last year, reflecting acquisition and related integration costs as well as pension plan expense. Revenues, however, grew from last year.

Net loss attributable to the shareholders for the second quarter was $3.24 million or $0.06 per basic share, compared to a net income of $3.19 million or $0.05 per share in the prior year.

On average, two analysts polled by Thomson Reuters expected the company to report earnings of $0.12 per share for the quarter. Analysts' estimates typically exclude special items.

Acquisition-integration costs and the charges related to the withdrawal from a multi-employer pension plan reduced earnings per share by about $0.08 in the recent period.

Operating revenues for the quarter rose 2 percent to $211.95 million from the prior year's $207.85 million. Analysts estimated revenues of $217.83 million for the quarter.

According to the company, increases in local and political advertising, together with growth in retransmission revenue, led to a 4 percent increase in television operating revenues.

Political advertising increased $4.5 million from the year-ago quarter. Retransmission fees from cable and satellite providers increased 21 percent to $12.7 million.

Newspapers saw a 5.7 percent increase in subscription revenue during the 2014 quarter. Total newspaper operating revenues declined 1.3 percent, in line with the first-quarter decline.

Chairman, President and CEO Rich Boehne said, "Our digital-only sales force contributed significantly to the nearly 10 percent year-over-year increase in the TV division's digital revenue. More than half of our stations enjoyed digital revenue growth of more than 20 percent year-over-year."

Looking ahead, for the third quarter, the company expects television revenues to be up about 30 percent, including approximately $20 million in political advertising and $15 million in retransmission revenue. Newspaper revenues are expected to decline low single digits.

For the full year 2014, the company expects television revenues to be up about 20 percent, including more than $65 million in political advertising revenue, Granite Broadcasting revenue of more than $15 million and segment profit of $5 million.

SSP closed Thursday's regular trading at $21.30 on the NYSE.