SSP - Earnings call transcript Q3 2019 | The E.W. Scripps Company

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Scripps Third Quarter Earnings Call.

For the conference, all the lines will be in a listen-only mode. There will be an opportunity for your questions, and instructions will be given at that time. [Operator Instructions] As a reminder, today’s call is being recorded.

now Communications Carolyn and call President Senior the Corporate and Investor turn over Micheli, to Vice I’ll Relations. Please go ahead.

Carolyn Micheli

Thank filings. for that them outlined joining statements and the everyone, may conference call and cause a that results includes A morning, our third in of forward-looking webcast results. Company��s E.W. you. discussion are Scripps may our to XXXX reminder, actual differ and us SEC Good for quarter thanks differ. Factors

And information. information you can can listen visit more You anytime this financial for to up disclose to of emails and also receive there. replay scripps.com sign can call an we audio you

The a Officer, President, Media Lawlor; Knutson; be CEO, will week. finally then and Lisa available Brian Executive Also Vice Lyon. National and us President We’ll Doug and link and Adam hear today morning the Tomlin; the Symson. for Financial President, in and Treasurer, first is replay with Lisa? Controller from Chief Laura up Local this to Media this afternoon room from

Lisa Knutson

everyone. Today we’re across report results financial met morning, company once to that and exceeded the quarterly or again expectation. pleased Good

on from the being and year. and our During transaction and Raycom. of the station closed acquisition Cordillera, Xst, we On May three On the merger. closed purchase their of on divested stations completed stations the on September closed on third eight by XX of Nexstar XX, stations Tribune third from we quarter, television and we we Gray Xst, January

press presentation in basis. an basis can the a combined results our We on all In January growth. picture affiliate of of the you you on new adjusted hope I find today’s since Today, Xst both and discuss this clear as our stations XXXX. gives results on reported financial will release,

to fourth point consensus estimates wanted three guidance. out quarter or quarter not results comparable our to that third Also are I

a consensus have mix and new analysts incorporating Some of divestitures, so have the estimates not, Nexstar-Tribune reflects some already submitted numbers.

or $XX about basis, division, Now, was In from last a million quarter quarter And Local $XXX compared an about talk same political decline revenue $X.X XXXX. of station strong Local on our we million. third -- performance. our million to third combined revenue for basis. quarter, ad XX% had was on Court flat. XX% combined third the Media let's adjusted basis an on $XXX up advertising Expenses nearly year's or combined in adjusted in million XXXX. Retransmission about an adjusted Media were revenue X% was

line results for about million The on talk delivered National The to expected. for basis. guidance down about strong had let's $XX from million. our $X.X division million, division revenue the Now consecutive coming bit the expectations. Segment close in profit of were and an with of expenses a company's QX quarter. second came $XX $XXX as million, Media services the Media Shared reported at results Expenses National we as QX, corporate rest for the in quarter. exceeded were

quarter from For net $XX $X.XX increased included costs share. works out related for taxes. integration by about operations per $X.XX costs about third of company's current That to per or million million million, the $XX and Pre-tax loss share. the loss quarter, the nearly acquisition $XX of continuing the was that

of have of the would non-core share, items. we if exclude per impact So reported you a loss $X.XX

for about $XX repack. million, Our $X capital just FCC the for expenditures the million including third under totalled quarter

reimbursed be government repack by We fully for expect to our federal costs. the

quarter, in capital the million in the million third dividend shares company during repurchased about quarter. payments Turning the made were year-to-date. $XX and No $X the allocation,

cash debt. billion. totalled we was while September on XXth, focused of On down We stay $X.XX total out expect while to million, the $XX market, paying debt

more and capture to from we subscriber half to advertising expect contractual Pay-TV value of from reset our even household. the newly expanded footprint year, national more benefit of dollars Next about political our

Because January cash those on flow contract the actions come company. household profile of of Comcast over two the reminder, a the reset after resets And we've the we've improved last taken years, Xst. significantly the

previously cash low flow $XXX range expect $XXX deliver of expect free to level we months, With XX cash over of XXXX mid-fours. to we fall As company the flow next stated, the that million. to in to million the we to

We on expense today's a now to combined September stations guidance. included provided giving adjusted press I'd our of touch Now highlights quarter and released guidance In periods, Local results an are XXth. The Nexstar-Tribune Media press eight adjusted all on release, the combined and in stations. our on as and of part like historical tables we fourth Cordillera retransmission Raycom some with basis. along revenue release

quarter, the the fourth Local That's Media political quarter in expect comparison of to revenue be of we range XX% in was to For because revenue fourth XXXX low down XXXX. our ad QX

is $XXX Fourth down quarter expected on to adjusted basis. mid be expense million an single-digits. Local Media combine

QX million that year, reminder, we programming last a a impairment one-time in had some also and charge $X Just costs.

low expect adjusted over of revenues We to for in combined range up results be QX single-digit retransmission the our ‘XX.

contract We are stepped have in up XXXX. no renewals significant

household. the National the expect year in to between investments TV expenses grow to we’re XX% $XXX million and of Media distribution and million TV in high US $XX revenues range. Expenses Court making of million We $XXX its include this

in We’re about lines to services million at and quarter. expecting come the corporate again shared $XX this

is And results. now our Media Brian here Local discuss to

Brian Lawlor

last station a former busy joined onboarding morning The Good in of we’re winding Tribune integrating mission high everybody. key and Scripps from in Having our new down September that including us our on XX. gone our an nine TV XX Through story-telling We’ve officially former really Lisa. we’ve stations. XX our is acquired expectations stations, seven XX on producing on new pretty one for the television good professional year. Nexstar Thanks, gotten stations A of element with to Scripps years, our a values, stations sharing cultural onboarding and performance. meaningful employees,

greatest cultural our from and synergies capturing In acquisitions. process onboarding, efficiencies possible to the addition our the includes integration

combined our the broadcaster, independent We’re stations our quickly we’ve control trafficking. company these created systems, to a include largest local national many master centralized efficiencies on local graphics, an focus fourth free broad the for to that new our Today and also object cost reporting teams platform local with with authentic businesses. providing and reach. ad captured moving news This connections as up

a Scripps As more is and growth, local our stronger, of result broadcaster. more durable a efficient

our business. like I’d to turn advertising Now to core

categories third improvement quarter, grew and growth. largest our year-to-year ad basis. During a showed retail, all the them on home of services, nice core Among station same seven eight communications,

continues strong. especially improvement category be Specifically, the home to

our consumers good that the local performing our these markets. spending we are All into and move of also local health It’s categories reflect in season. see of retail to economies as holiday the well

has the are of fourth continued pleased quarter. our as ad months sales one quarter’s that finished strength October We year. third of strongest into categories the

political very an off-cycle Our here. election revenue for strong was advertising

where which races. put Kentucky and Louisiana benefited governor just active And in from us stations very have acquired competitive newly in races. state Our now we we stations saw Virginia, two

this have $XX for That of a more So pro revenue. puts on election-day political we we us more a advertising than than million have five the brought year first of of steady odd political revenue weeks fourth year in million forma stream the quarter. now political By $XX ad at basis. of week, this

all looking the Finally, and a October, In me as distribution, well audiences extensive Media same Tribune Kelly just as on National Court TV discuss high is cable appears is over the original top segment global including profile Katz docket and in homes, series the XX% platforms. the of At XX% year, the of time, which to Court producing financials. on We've around households the stations. now Katz programming, corner. that Harvey U.S. trials and the of compelling. of trial. I’d And got to O.J. like TV And our launched additional network at about the Simpson Weinstein result business, former the an reports XX-week multicast Court an over as reaches the R.

network. TV our nearest audiences Laura. We now draw big here's to Court expect continued that And programming Katz to

Laura Tomlin

reception I'd growth the the Brian's Thanks, Brian. of and by Good TV. distribution start rapid Court morning, everyone. enthusiasm for warm to echoing audience like

Our come support the company launch. businesses TV have to together the across Court

with New billboards. helped programming, TV Politan Newsy and TV We local Court we have ad Square provided Court for in Iyer. of stations promoted interviewed Seema podcast, and a Vinnie promos Time Our launch anchors WPIX York NASDAQ's TV Court inventory on TV

raise perspective, content one and and Media the businesses This the techniques marketing time, more using a talent for as other assets profile our platform as across TV. company. yet is brands same a tapping are media is and our stronger to and Local media Scripps Court And we From larger well. of advantage into to National the support

Newsy. revenue XX% again, division, in Stitcher, quarter growth growth includes and the million third nearly XX% growth performance results, Media our revenue. to at Turning XX% at neared at That $XXX Katz, National

As come up and to tough of we they see Newsy against a fourth year. quarter as the the some we last comps fourth look from quarter, Stitcher bit moderating

continue can’t to these rates double-digit businesses. growing fast for growth look You from strong

big shows At friends investing episode hit mid-October The media the new expect, classic and Stitcher, such episode two at downloads. generation the is Scripps humour. real-life Angela best of two and chart, a to debuted Office has dissect A went to show and one consumer in top habits. cater with that first as This we TV a why they're featuring would great had great Lady. another podcast businesses just Jenna listeners the show, podcast Office, launched watching is the example too. nearly of Fischer Kinsey. that two Ladies' already Office straight you the hit million Office, in The time, as sitcom, TV is of stars changing The

O'Brien Marvel a with Queer popular hosted Media. at it's by and this the hit success Curious, a just book. part Stitcher, Van based our on and seeing with New Jonathan It's announced we've called Stitcher Ness week been four a the Needs of launch MARVELS, of Getting third drama Conan series Friend scripted Eye. comic shows; Netflix Also

about Max HBO in new cult version Heaven's OTT committed members of the California-based suicide television will podcast popular documentary mass create the whose Gate, Finally, Service Stitcher's XXXX. a

expanding shows sales podcast its owned-and-operated Stitcher listeners positioned to listener These and into partnerships and is capitalize to the new advertisers the this app. because its high Stitcher relationships profile ad on of shows, marketplace. well drive its podcast growth and network,

provides an to terrestrial as And digital well. also digital these Stitcher’s to of is extension Triton streams. into technology our offer solution onto Triton now to now business, and broadcast we from of Triton benefit over-the-air companies BXB services, current podcasting infrastructure natural is Triton, the our platforms. convert a with these able At services digital platform. companies companies continue It's end-to-end their move radio powering audio

recent discuss like a I'd Newsy. our wins to network number of news for Finally, national

this issues it and of year, including rise at and our the documentaries. seamless impactful fire produces sexual continues land, of use cases Bureau of as dug to climate and investigations authorities major teams mishandling inconsistent Newsy the profile system assault impacts into alert misclassification change. Washington investigations, police on American Newsy’s rape have of The Native

Newsy awards this has won XX national for year. work journalism to

network identified study. chart In bias media recently addition, most it neutral as reliable in was a recent and cable the news

and objective in well the have younger right a market over-the-top or grows, for Newsy's consumers entertainment. the oriented as by the And audience facts-based approach landscape received for outlets and news particularly left so the been information does audiences. turn media of revenue,

Now, here's Adam.

Adam Symson

has our I'm results good period for and or we short-term everybody. on when the exceeded pleased progress. marks in of a And expectations performance our team. announcement key quarter years Scripps’ third Improving met Laura, see morning management reporting two the this operating consecutive This eighth terrific top last have priority financial to this Thanks, been measures. morning's

In year we stations. September, divestiture Nexstar-Tribune our we when closed M&A wrapped up a busy on

landscape. repositioned We thrive are consolidated now media in to a

improves stations, added debt have number operating three of activity XX significantly number our second in acquisition two We've and and and profile stations scale. now one households. one own some legacy stations reach Our gained our reaching key We Scripps’ markets. in with American Scripps more and

not we're today, we're only but bigger, better. So

excellent more on is group provide performing, better capital. invested an with shareholders station return durable, our Our and we'll

And come. the the in that new a this TV and base, financial emergence capitalize provides including on ATSC confident the for of through growth This a is future consuming people significant are that of setting we're that this firm Our at and to the to hedge models advertising media. modest that generate a X.X significantly same or automated growth around the we make from business, business long-term short-term as ways upside we'll up company very From are new approach enterprise. business we investments foundation strategy are next time, both still value. broadcast generation solid profit will

of and growing and digital Katz, over-the-air media Triton, Our audio four major marketplaces podcasting. Stitcher are Newsy, in businesses, and fast over-the-top national television and

creating expanding Our and new national division is value. rapidly shareholder margins brand grown, its

our our execute. another this informs Year throughout the the and brand the then consistent that to commitment to short-term, of serve the Scripps integrate the for objective our the we our free to plan reset back as two opportunity we the year households. delivering we'll use process our distribution with we debt maximize and in bottom the growth we And To value Comcast We'll quality, our down financial full democratic half journalism our move across ring conclude, as This we’ll work yield plan local in with to pay of out our an Pay-TV with and for and reset our synergies. to year, across stations of cash boost audiences ratios. to households, the and immediate we'll trustworthy our line, reporting is New continue capture nation you We'll new higher ago, to Scripps’ is years laid flow news all is outlets. leverage historical election

we’re ready questions. operator, now, for And

Operator

with ahead. Instructions] to we’ll of And [Operator Please Benchmark. the go Dan line Kurnos go

Dan Kurnos

It Good -- up of most sort assets picture level just the landscape. a to there. Adam, stand high Thanks. are guys start the still; sounds of of lot guys. here, know about after just dry-powder of cash bit it towards more on you’re well. the have you you I to with progress, as are I’m still that a seeing ticked come curious morning. been other focusing delever. here. what a guys talked of like kind guys big go we’ve Nice consolidated any return of you rapidly working have out Do

happen been about level And have on XX up for get some of maybe guys in year. inching high everybody is we so talk until guess, Brian biting given comps kind It’s or then, far, reluctant So to next just and I But kind levels. massive there of if what you everyone just opportunities record you further of kind new guys have is is been picture, think interesting time ‘XX. to to ‘XX. versus political. I consolidation know

thoughts Thanks. there. just updated So some maybe

Adam Symson

Thanks, Dan, and morning. good

for As we’ve us said before, pay free for that is right priority flow now, our cash debt to top to capital delever. down use and

ideal for timing us. the think actually I is

election. local occurred think before television unlikely. We’ll it’s significant I see M&A the

with with. our as that cycle And have we’re additional And so debt we we’ll use then that to we’ll more step-ups with the Comcast we’re come the that time line, and period along opportunities re-trend levels the -- Brian? of back the both to comfortable in rates much further reset XXXX level the they down debt. once political pay address down

Brian Lawlor

us and about Hey, year. good in Dan, it’s Brian. telling in Obviously, where we’re really political, the we at XXXX what it’s about feel next

then in Governor on Just where political days for in we as there another the this Virginia, XXXX. is still did week at in we our two And stations seats got as run-off much wrapped did seven three the the there. in times state advertising up Virginia. We Louisiana, on

were then, in We’re already over greater And XX%. than in Governor the we race, Kentucky we’re XXX% XXXX. up

growth mean in markets. So telling. I just that I these think massive key really And

looking each those lot more So that at obviously, five. in. in ecosystem next like We mean, presidential, Senate our states, Florida, but those Colorado many with now, been. excellent. footprint think toss Arizona, Florida, there I many better about states. of that own that those footprint each more as to we’re and we -- optimistic Colorado, stations think races Michigan, markets Wisconsin, market there’ll We’ve own ups okf we I very has get We And in more year. we than is money three considered ever of market be them of Nevada, we a six the we three and got Arizona, business three have -- own of we’re two, right Michigan, doing

like I toss-ups like We are XX of XX now. know in have don’t and Montana then, We're seat, something races that gubernatorial congressional right opened them. considered

us of everything's lining next heck up a year. think, nicely I So year a to real for have

Operator

Fargo. Cahall Steven from Wells is with question next Our

Steven Cahall

could re-trends year. outline Adam, if like maybe little of revenue looks us a wondering next I was an what for give bit you

guide room think It focused massive and lot interpretation step QX on I all after your kind a a you've maybe little does right for this M&A. of leave the up. markets got now, of the

'XX? So maybe of could us is forma bit what to revenue you help just like a benchmark in that little look pro growth going

Adam Symson

Steven. Yeah. morning, Good

subs obviously up flow that step-up. that. So After a very forward on come receive January We're to And finally year. XX% another we that. Comcast negotiated through the nice be on our Xst, of we we'll there'll have that through that, think looking and be will

And so, in with the of value I local be prepared receive distribution, as MVPDs. said able brands those the we to our our to expect, of remarks, full

re-trends think it's a to year going terrific So we perspective. be a from Brian?

Brian Lawlor

want Hey, just Steven, jump to I in. it's Brian.

I think, Nexstar. the we to the fact this prior on couple this in a quarters, talked to acquisition really CW last about one of our a little and lot of dissynergy that with And re-trends a year, Tribune we station. that, the year, do of has bit owned of

our so maximize own a that re-trends year, of the traded now bit we at to negotiations, we the our Xs. value end this value of big away But in XX clearly little CW of stations. And

of CW that I for about market, we're is able that said, our think, get the pretty be rate And we'll subs dissynergies. But account would just Adam market XX% of recapture for current value. our So below quickly. to and as most into to

really do term. dissynergies those as at And look so we short

Adam Symson

got like than different Comcast our we've Yeah, of trajectory add additional this years, step-up the for peers. obviously a the The We've out. of just for opportunity. said just round sort I and waiting, households, been very we've the is would re-trends then Scripps’

for forward. have upside expect re-trends So significant as we to us we look

Steven Cahall

And the the really just and It then for couple a national Stitcher. in seems questions some maybe multiples growth good with there Maybe audio first space, of rich assets. side, Triton podcast on seeing seen you've we're there. like paid

business those direct potentially industry like the that more strong Is So you advertising the think the parting at CPMs? do is be TV. this that scale on getting versus do about And there Thanks. of improve to most the it some Court you you think rate as in currently really that expand response? programming how then maybe to increases multiples? could Nielsen or scope with verticals assets And some

Adam Symson

Adam. it’s Steven, Hey,

take we So question Court year, me advertising first. direct let today second earlier the is this launched Yes, that because just most TV response. of

response that year available trajectory next mostly rated, in and but same we're it's direct we'll the we direct our households of to as Now multicast transition markets progress your market of the advertising. about the that the Nielsen towards podcasting advertising brands and have, digital as response in and hybrid pleased direct response slow to space, habits we're audio where XX% U.S. marketplace obviously the consumer follow specifically, digital brand -- all audio general growing On moving and The the well. from really change, question to the the quickly, be about are making. then with expect, going beginning

in we've to numbers in as billion the are. for marketplace’s Scripps continue look at two. it next been why be present within expect the opportunity themselves We you year digital development the the audio all probably same to space. a We'll and we've opportunities space Obviously, so as podcasting the they that's marketplace, take $X And seen on comes. bullish the or

Operator

to go Stephens. Kyle Evans with Next

Kyle Evans

point was by of can deleverage. there double little back kind you I've you comfort a that got brackets asked two different can to on leverage kind that which to Adam, get level, around follow-ups. tailor about thinking a just were some And and wanted bit I put start a Dan. get on you Could is? capital to questions of you what that level leverage allocation where some mentioned then,

Adam Symson

me let broadly. so Yeah, speak

sort has want bit relative we’ve spot where Scripps Lisa, to and been would program sweet around historically know, change when view. buyback scene X.X, that's restart little a our you or our of talk we X, of about sort most to always a you stock do that? of As

Lisa Knutson

the somewhere Yeah, between months, in Kyle, low-Xs. mid would we said, be XX next we and the

we the a stock would I at restarting number that we in think once would X. buyback were start with look

XX to take to a really and to that's priority over our our is strategy. really next XX So X, allocation our down approach -- get restart months balanced then capital to -- the that below

Kyle Evans

Brian, you state-by-state talked a little about cycle trends. bit

I'm just pro You you also from very that half XXXX, lines up reverse the the a and guys the Any the strong way then forma looking to to if numbers, think there year? Is displacement of XXXX guess, us along lost had in very, about we're going a political. in 'XX think XXXX. at flat of wondering this and get strong to numbers? second for you're kind clearly just I

Brian Lawlor

be think three happened I going that. in markets where up we'll period, get five the of lost Again, to I think, four able four states, and some would mostly displacement make in week about I numbers. that a I think it's most talked to had really have we’ve or

So we're we thinking XXXX somewhere forma mostly upside, XXXX, it's as out $XXX I And as referenced a to look around in million. XXXX. number you about pro think

Look, determined, on or then sooner perfect to have. the that. April. the pen have June March the spending. clearly window can But primary If secured a active or they So scenario, once candidate And lot upside early convention, to but depend we to yet the be on revenue their that candidates for of those to will the more can nomination out for then two short we starts upside in we each one side is that. democrats a finished a The the a candidates drag this, are kind in see upside on how from pencil get putting field. the we democrats going haven't opportunity the narrow quickly

pro number our clearly, expect watching So beyond based ecosystem I forma. 'XX and well. period very the that historical I be But we'll footprint, early positive the on a of the think would help

Kyle Evans

of in do get you’re comment how and XQ some seem wondering sub Brian, peers your re-trends you’ve what blackout basis of had into I seen could the what and trends there? on kind a pro in factoring satellite you was outlook? on crossfire. caught cap your -- forma We you to

Adam Symson

morning, take to going Kyle. good this It’s Hi, Adam. one. I’m

were sub think, bit most of from And households as I the that described, Pay-TV reporting ending decline, Our you came a the period, June. down last just satellite providers. in from

I report So week’s by September. dish was through actually encouraged sub-count pretty that went this

We’re obviously also the still households. in growth MVPD virtual seeing

sort point it, So that we sort where time a of in we of at think see we’re right now.

Kyle Evans

Got it.

Lastly, with getting Laura, kind where how the or not you in auction any think Thanks. the whether demand are sales versus open just an are more engagement sales Newsy future? or update what you envision consumers, on if of constrains And you on side? -- kind supply your of direct there best they the there

Laura Tomlin

Right morning. by both the Good audience the still said, of most growth I is now, and OTT. sort revenue of really driven

platform. product continues seen You And a consumers younger XX%. with Newsy can to the very rate great OTT see the deliver year-over-year we’ve growth pleased at say on been

growth We’re seeing some cable. small in

I remind sell ourselves on think and it network we overnight, and grow that these. can’t to just expect cable turn a you

is expect XXXX. And a a ad a demand more revenue we’ll this is still and lot not on there marathon, So I OTT. in that cable sprint, of see

we’re we sold mentioned not typically the I sold out. past in think, where if I’ve out we’re

Kyle Evans

congrats lastly, Thanks. the And you. Thank Great. promotions over there. on

Operator

Our question with Ryvicker is Wolfe Research. Marci ahead. Please next from go

Marci Ryvicker

X%. up peers, almost You posted of core sort of best your the

is we into the then on that comments based just secondly, upside press quarter? And accelerate release? in going Scripps about the you the let flow me higher comments It flow significantly on cash Should your Thanks. sounds there when be to cash that Adam, So free should October? to you clarify Brian, generate, fourth cash like can we how XXXX, could free expect in made. what free otherwise flow think expected you say

Brian Lawlor

gives talked just I really said the We’ve speak that it’s efforts complement And cruises, everywhere. travel furniture, as like we think were these comments, that sellers. Brian. appliances the all for on mean on prepared leisure, of are travel Thanks shoes, core. pleased It double-digits money the categories up. jewellery, on and about us spend that income in taking what bit economy stronger a Marci, our on people healthy, things really they’re on our our proud I and hope sub the categories and of And largest really very having local we’re new up, and And our we’re significantly, of local local think, bedding, that. up seven that of on in business markets I to and advantage disposable the and as spending lot are effort. eight categories of markets Hey, I money.

showing it’s surprising, I in because remarks, I we than -- think numbers. expected, outstanding, against it’s in November our say better very obviously, was did but of my – well. prepared goal our was October and political it not is strong as

really right now. feel quarter good I we fourth think So about

Adam Symson

view cash flow. could year. strong free you pointed our Marci. next flow additional year next political Yeah, we for out, that with free morning, for be reiterated upside But on so cash the there Good as year

Operator

Capital Markets. is question next Please from Noble The Michael Kupinski go with ahead.

Michael Kupinski

quarter, congratulations the and promotions. on on the Congratulations

about just of, on to an -- I that us -- of you give rate TV, be of of us a a can And you we TV. little I And the the there revenues because a in little coming the than a the little a were due of me give see of we're anticipates because could Katz. high-profile Court especially, Court quarters the little But bit softer colour for expected, kind The things little I wondering talk of in the kind and to there? like excuse just deceleration there. launch acceleration if revenues it's course, the growth coming First, Court colour quarter. of would was will to from Should starting year. showed the earlier

Lisa Knutson

Yeah.

just some seen to I we've XXXX. will jump deceleration. a to of growth throughout bit you Brian was it's seen XX, consistent XX%, so then growth don't Brian, little So a -- we've know the Consistently, don't for think ad that. add colour Mike, if Lisa, it think colour. in I rates I'll I quarter, pretty and third XX, want

Brian Lawlor

XX% on country Yeah, Mike, the launched May had that we obviously, when Xth. We launched. we in

just the we're Steven. just, so And -- you It's up. when No beginning there, brand laying to the response, start we're to indirect earlier out numbers question, by get brand a new network. it's

TV So, to expected building be. toward I Court what we think, is

lot revenue more we picked the at think in the but DR slow XX% country addition rates jump the about expected of and the phone grow other a of I of saw take a had I their this to every revenue, feedback our of We up, with think importantly, the terms crawl up. clients week we got week. a big positive from significantly continues

good really about feel we Court. So

right Lisa almost so not all Grit. that much growth They're at Court, the next and pace, now XX% business the going As lot momentum. of get to and said, to double-digit Court speaks really as as Bounce think to see contributing strength the up year. of benefit with into that, we with for really of a gets the And strong I Laff middle to you're

Michael Kupinski

us be the have point? you’re -- some indicated since core. question exception that any core noticed I larger give smaller little your added of particular number of just auto? markets following-up your between And with on of broadcasters on you on wondering Can you Marci’s advertising Brian, seems was to markets pretty this at Have strong as colour National differences and a

Brian Lawlor

different we City, some strength. places. Las the good the of single-digits in mid side. the lot We up Vegas. Local has we a quarter and Tampa, double-digit a markets stability is Local in good saw We our clearly our growth also. in in National biggest our the year audits, news like Kansas the large that on inside think were been But of healthy, markets on And growth I category, are had and spot some growth -- saw

big of healthy. our many markets a So healthy the there's markets I But are are very -- there. think opportunity – smaller small pretty well. It's just as our

Michael Kupinski

prospect the And Has I you the talk And getting over increased that. talk that of then quarter? go back And that on to Can that can subs cable of were coverage it about you more then, on number adding has? the you ratings it expecting on is about to the Newsy, cable? want cable? currently

Laura Tomlin

Laura. Hi, Mike, it's

XX subscribers We right pay-TV around are hovering now. right million

we've virtual the Over few added on a quarter, think the side. I MVPD last

content we relates cable, a it to became our to host ratings of and we data just rated. on As inform use strategies, currently recently

for great a mentioned bit as like the – OTT to a cable I We're authentic, we've subscribers out that but product putting expect find marathon, have. sprint. takes that suit, there it the being on and earlier, and time will our really a early. and going it's Newsy to demand objective it's little not we So follow channel seen And audience for is folks guides, our Newsy

Operator

Huber Our next with is from question Please Research Partners. Craig Huber go ahead.

Craig Huber

two I have questions.

year bit First, the what TV a a election of you on can December? it you are the anniversary seeing about talk little little side, for in auto further ago? mind is post a How bit your Brian, there November the look and

Brian Lawlor

Brian. was It in thought pretty hey, had in down of Look, automotive low-single-digits. decent quarter. we it's the Craig, third a Yeah, I quarter terms

best the Inside a of kind that's of where know, saw some you think while. performance I as we've had So we excitement. auto, that's in

up dealer domestic groups digits. Our double were

able grow single-digits. big Foreign up all mid of We dealers, couple individual were brands the brands. about dealer flat. our of to their across We had were that groups were a

look it way like tracking I the think up year, the And with Obviously, the of is last rest significantly. So auto good. quarter. displacement October, it's the we for

Craig Huber

up of could and half As up second you the Brian, is December November sensed or auto, that too for be ambitious?

Brian Lawlor

my ambitious, me too early it's on but it to comment. think conviction is for don't too some I have

year laid for gets share. some new market in I finish think, auto, capture with and close-outs the and models definitely to December, and deals year-end

typical the Motors fourth be was, cancellations about the to the we're the I good no think, impact case. nervous through pullbacks. The I There to expect strike, So that no and on build all would auto virtually us. General strike, had or news quarter, it's were that for very and no

get As that, the were they meaningfully of before a result resolve to affected it local dealers. able

Craig Huber

years interesting What to about? there? the given local which, now you're the well of some of strength right make I say. do you parts talking mentioned doing economies the category, you store And been bankruptcies your that there, of are it's last and retail numbers two all mean, out strong, has that closures it Brian the not

Brian Lawlor

retail, because far, really just best best the depth for doing seen -- quarter the of category of they're well. long Yeah, in By time a we've the it.

head that up, up, Sometimes a subcategory, optimism the and I the of up, really mean, as up it us a lot was subset furniture retail quarter, season. holiday we good pet, was had driven gives but biggest We and had jewellery, good which were a medicine of a almost singular really bedding can double of was stores, appliances by furniture, that is up, toward strongest be was quarter, which digits. the retail perhaps

Craig Huber

Brian, ask want I you, re-trends to subs. on

Adam think, I was that down slightly. So

the So latest that down there? numbers have about I the think you X% for

Brian Lawlor

We were Craig. down X% about

Craig Huber

all also the And Brian, you there there availability much put for week? putting extra of curious, recently, of the those there course you news number in closed just Down on news is casts TV X%, at can hours acquisitions okay. over more slots the just here then acquisitions,

Brian Lawlor

There is.

stations, I Miami, of CWs, our expansions of opportunity at of think, an a bit of include that think us, and New Cordillera, news some are maybe big CWs But and especially the on quite I obviously, of and there. the for expansion Phoenix, maybe is I weekend I of some I I Tribune, the because markets as all so couple if think a all a some York, stations those see there of we expansion bunch think, for large look into the in do opportunities, markets.

Adam Symson

us just our markets. Hey, continue the remains yield those for of the an of I news obviously, election us out to ahead commission. serve our Craig And opportunity to journalist maximize for would expansion add that to for

Craig Huber

do renewal had on million versus up you so had by in be re-trends the if obviously, saying further. I number but you touched stuff. mean, to sequentially TV a basis you’re re-trends part about Maybe the just for pro can that, I we quarter, quarter, question, on clarity, fourth I revenue outlook mid-year, a last equipped $X at you’re I mean, there understand by just you for re-trends touch think bit sub this this, its offset little on forma also on saying my the in the in hurt guess, get I dissynergies want been I obviously, the of dissynergy. should quarter second

little So maybe you can further on just bit again. a you. talk that Thank

Lisa Knutson

September Nexstar would you of back when point to if station back we XXXX we divestitures, numbers had XXXX. to beginning in the our we closed I on gave Tribune Yeah. back release on that -- Craig, full forma pro

So of into numbers able sort there. dig to you’ll those be

Craig Huber

you I’m September looks right had quarter. for guess quarter million re-trends, right. in those March $XXX -- June at called the looking looking $XXX the you at now, reported Laura, in million Then the I like data in $XXX.X quarter. million

Lisa Knutson

renegotiate few I CWs And were moments will a dissynergies really so CWs, think, Brian, of Yeah. the year. associated the mentioned that the most with back next

Brian Lawlor

some Yeah, declines. a bunch subs did synergies of some and that Craig, that CW moving parts bit I we little this is sub had of beyond just we think, we we But inside that. have that. this earlier, some a on explained came up, step-ups have that, have had I Obviously, did to and

Comcast nearly XX% year, those decline our first at the were sort think get to of end the of step-ups, what sub So the with synergies step-up of to really year. the the the and half year, about the of I then, and we’re meaningful offset relative the next subs not but

to cancel there each moving but half of think other think out, year the some look this were of to kind upside is in as we degree I So there lot back parts to a some of -- XXXX. I

Craig Huber

one pro more that number TV handy? political you have XXXX number, I sorry. do have forma question, just

Brian Lawlor

million. $XXX

Craig Huber

Okay. revenues? forma And How do question. year-over-year Triton did do-- my this how Triton place did then on pro basis for the is last

Lisa Knutson

asset. is earlier non-core growth our my a with -- year expectations, and Triton’s did sell we this

a expectations that in revenue core But the revenue the gives quarters. on So of decision growth and in, really team sell will we see that, line our streams the with outside focus Triton’s non-core ability measurement. and the few really the asset they’re to for impact of to on two infrastructure

Craig Huber

up That means is so? an or about XX% underlying

Lisa Knutson

Yeah. Yes.

low teens. I think it’s

Operator

[Operator ahead. Instructions] Wells Hebert with Next we'll Davis Fargo. go Please to go

Davis Hebert

Just quick trajectory. me. a the comments from appreciate a ones I of couple from leverage

of give all If parts, LAQ you moving the X.XX? could as the just leverage

Lisa Knutson

Yes, that X.X. would be

Davis Hebert

that includes And experts your Comcast?

Lisa Knutson

includes forma, it That so pro is Comcast. our adjusted

Davis Hebert

podcast respectively? translates I guess, and Steve's to space. alluding to Newsy Quest. your of kind question, a in do been Altice, last you earlier on valuations, Media question to then TEGNA and think of valuations then there's other for that How was sold Justice bought National And and transactions, Cheddar couple Katz

Brian Lawlor

in the mean, time, this we're a shareholder doing creating a create in this value the as history I well of long them value businesses, But and Stitcher, company. modest about that. long Katz we're of we've unleashing oftentimes strong Midroll, now believe the talked and our shareholder name for at think to Obviously, those value Newsy business, growing we first of I are these affirmations focused we're both both shareholders. with value through podcasting marketplaces, and and the building exactly investments has for yielding and and totally company on the moment, at then organically transactions. within

Operator

for with any it And further I'll closing to company back comments. questions, the no turn

Lisa Knutson

Thank you. Thanks everyone for joining us today.

Operator

participation. for Ladies you your Thank your gentlemen, for conference today. and does that conclude

You now may disconnect.

The E.W. Scripps Company (SSP) 8 Nov 192019 Q3 Earnings call transcript