Here’s the skinny on The E.W. Scripps Co.‘s Q2 earnings results, released early Thursday: Net income fell by 4 cents per share, despite an increase in operating revenue. Its TV revenues are flat, but its radio division suffered a 5.2% dip in its revenue.
Even worse, the TV division saw a 6.6% dip in its segment profit, while the radio division’s profit tumbled by 25.5% in Q2.
Those results, coupled with unease over advertising trends at broadcast television, pummeled shares of “SSP” on Wall Street. As of 3:25pm Eastern, Scripps shares were off 8.5% to $17.82.
Scripps reported Q2 net income of $8.55 million (10 cents per share), down from $11.48 million (14 cents).
Total revenue increased to $231.82 million, from $227.82 million. This missed Street forecasts: Three analysts surveyed by Zacks Investment Research expected revenue of $233.3 million in Q2 from Scripps.
REVENUE SLIDE, PROFIT DIP FOR RADIO
While Scripps’ revenues are fueled by its TV division, which saw flat operating revenue of $193.3 million on segment profit of $49.79 million (down from $53.3 million), there’s trouble at its radio stations.
Segment revenue for Scripps’ AMs and FMs dipped to $17.25 million, from $18.18 million. At the same time, segment profit moved downward to $2.91 million, from $3.9 million.
Scripps’ radio segment is comprised of 28 FM and 6 AM radio stations across eight markets.
The results came after Scripps on Wednesday (8/2) acquired the Katz multicast TV networks Bounce, Grit, Escape and Laff for $302 million. Scripps was already a 5% owner in a portion of the business, so its net purchase price is $292 million.