Early risers on Friday morning will get their first look at the first quarter results from The E.W. Scripps Co.
For investors, the company’s financial performance will come with the assurance that they’ll benefit from a cash dividend in just a few weeks.
Scripps’ board of directors on Wednesday (5/8) declared a cash dividend of 5 cents for the second quarter of 2019.
Scripps shareholders of record as of June 14 are eligible for the dividend, payable on June 25.
The dividend will be paid out of the company’s surplus, and Scripps intends to pay regular quarterly cash dividends “for the foreseeable future.”
With the March 1 release of Scripps’ 2018 full-year and Q4 results, the company noted that it expects a roughly 15% increase in the retransmission revenue it receives from cable, satellite and over-the-top TV providers in 2019, excluding its just-acquired stations from Cordillera Communications.
Scripps President/CEO Adam Symson said, “Looking ahead, we are focused on continuing to seek opportunities to bolster the durability and reach of our portfolio. Scripps also continues to grow its retransmission revenue and will benefit in less than a year from the reset of its Comcast contract on Dec. 31, 2019.”
But, what about Q1?
Local media revenue is forecast to see mid-single digit growth, with retransmission revenue up in the high teens.
At the same time, Local Media expense is forecast to grow by mid-single digits.
National Media revenue is forecast to come in the low-to-mid $80 million range, but National Media expenses are forecast to be $80 million, limiting profit.
Year-to-date, Scripps’ shares have been on a growth ride, moving from $16.17 on January 2 to $22.29 as of Wednesday’s opening price on Nasdaq. SSP goes ex-dividend on Tuesday (5/14).
