E.W. SCRIPPS Co Q4 FY2024 earnings call

• Adam Symson discussed the opportunity presented by changes in Washington regarding FCC ownership rules, emphasizing easing restrictions could benefit the industry, local journalism, and shareholders. - Mentioned the company's plan to reduce debt, improve operating performance, including debt refinancing, reducing leverage ratio to 4.8 times, and progress in Scripps Networks division margin improvement. - Jason Combs detailed debt refinancing efforts, including extensions on term loans and AR securitization, and provided highlights for Local Media and Scripps Networks divisions, including Q1 guidance.

Local Media division: Fourth quarter revenue up 34% from year ago, with record political advertising revenue of $174 million; core advertising down 11% in Q4 2023, Local distribution revenue down 5% year-over-year; segment profit nearly $200 million vs $86 million in Q4 2023. Q1 Local Media revenue expected down high single-digit, core revenue down low to mid-single-digit, expenses up low single-digit percent. Scripps Networks division: Fourth quarter revenue $216 million, down 6% from year ago; Connected TV revenue up 16% after backing out shut-down programmatic advertising products; expenses decreased by more than 6% due to cost controls; segment profit $61 million. Q1 Scripps Networks revenue expected down mid-single-digit, expenses down mid-teens range. Other segment: Fourth quarter loss $8.3 million, Q1 expected about $22 million.

• 2025 expected cash interest between $175 million and $185 million, cash taxes $25 million to $30 million, capital expenditures $55 million to $60 million, depreciation and amortization $150 million to $160 million. - Q1 Local Media revenue expected down high single-digit, core revenue down low to mid-single-digit, expenses up low single-digit percent. - Q1 Scripps Networks revenue expected down mid-single-digit, expenses down mid-teens range. - Networks division margins expected to improve by at least 400 to 600 basis points in 2025, trending towards high end in Q1.

Q: On FCC commentary, Gray's waiver and seller/buyer perspective; A: Adam Symson said they'll take advantage of FCC change opportunities, focused on deleveraging, and will look at all opportunities.

Q: On distribution and sub trends; A: Jason Combs said about mid-20% of subscriber base up for renewal, Q1 sub trend likely down mid-single digits.

Q: On core advertising and macro trends; A: Jason Combs said Q1 core weak due to economic uncertainty, impacting automotive and retail.

Q: On EdgeBeam Wireless; A: Adam Symson said it brings 97% U.S. TV household reach, expect to share revenue details soon.

Q: On Networks trends and local sports; A: Jason Combs said mixed bag in ad marketplace, local sports expected to contribute low single-digit growth.

Q: On debt and AR securitization; A: Jason Combs said AR securitization included in interest guide, working on near-term maturities.

Q: On 2027 debt and WNBA sports rights; A: Jason Combs couldn't provide specifics on 2027 debt, Adam Symson said working constructively on WNBA renewal.

Q: On network negotiations and cost outlook; A: Adam Symson said network relationship needs correction, Jason Combs said Scripps News shutdown saves $35 million annually.

Q: On advertising categories and live sports EBITDA; A: Jason Combs discussed auto and retail ad trends, Adam Symson said live sports deals done with discipline for value