SSP - Earnings call transcript Q3 2021 | 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 2021 Earnings Release Conference Call. At this time, all the participants' lines are in a listen-only mode; however, there will be an opportunity for your questions. [Operator Instructions] As a reminder, today's call is being recorded. I'll turn the call now or to Ms. Carolyn Micheli. ahead. go Please

Carolyn Micheli

Good us John. company's and you thank results Thank a morning, discussion joining for business Scripps of for and you, strategies. everyone, the financial E.W.

scripps.com outlined statements A reminder them that our link visit You statements and include and may in to that more may and of call. replay cause actual conference a results can our this SEC to for webcast the are forward-looking call differ information measures Factors differ. we intend call to not We provided public forward-looking analysis valuation the on discussion update filings. in as and today. to this and make any of will of do Included certain that supplements a are in be the management are their the non-GAAP assist formulated financial non-GAAP GAAP companies' financial not to Local our Knutson. replace is GAAP uses Combs; with Scripps accordance our the Symson; Jason not Officer, are statements. morning GAAP on Lawlor; reconciliations in Lisa and Included to Perschke. Scripps call Dan Chief Also Financial earnings metrics Networks CEO, may from and from the hear President and measures President, in release or of and this President, Company. Controller Adam differ reported Brian Media other measures measures We'll financial meant These financial financial are formulations.

Adam. here's Now

Adam Symson

else months broadcast transformation joining we playbook thanks Scripps' company, for in anything of we XX know need television report results. as kind sector. to from and are us everybody, morning, Good the a a into investors fully of unlike quarter outstanding operating into different another

succeed results full-scale we're the will outstanding evolving performance marketplace. deliver company local we also our positioned have fact, TV become In by evidenced that a to more well than are television as and financial in broadcast Instead, company. a much near-term

and we new the group, local Scripps just story. results a high-performing broadcast scaled While part operate fully driven that's of

is tomorrow. our broadcast national us aggressively distinguishes TV and our focus our on the Networks and part serving other and from today The business peers, local what of consumer

what watch it. to We however delivering want they them watch, are they want to

$XXX move closer profit. we this Scripps and of the us $XXX As for division the to flow nonelection our cash Scripps revenue the will $XXX is million. But guidance. toward of increase first the us flow about Networks' to XX% television close entered year, XX% Networks performance Company's million has expecting We have cash we our made more segment a is free This the that now far again it to million fully and between And more productive year $XX of $XXX free once flow XXXX million. year helped cash accounting end durable. of expect company last scaled our quadruple free million. into to The out and be transformation

of marketplace. the mix as outstanding the a than faster of as we've advertising, national than media and And broadcaster. us also undergone direct much as encouraging is well now cash national In Our this but We course, as our changes to burgeoning year, to even access the local select positions just to of debt on an more and a television delivering I'm advertising Scripps flow results to evaluate market, not light and television. company. investors we free have from upfront scale gives scatter response new local us to general capitalize profile down smaller had asset the paying path future new

we value. Local have half years year, create for less consumer it trends on of ago, has growth revenue where because retrans revenue to habits benefit company be we share retransmission Now remaking new of company Ever we media will Media repricing ahead since growth. we absolutely principle expanded significant continued and total from the of to about been of will than broadcasters, account other guiding began early several the revenue to opportunities back significant of our that opportunity while this to for us. XX% of the our ahead similar expect our And have identify marketplaces this into get for

play continue to and marketplaces options will role many our local profit for creation significant the important also We from opportunity new ecosystem, value have more up the viewing investors. TV opened but pay TV Scripps' have brands now, in consumers those

over-the-air is happening or of in time, compelling XX% one leader XX% about Scripps that This channel. marketplace nationwide almost You local grown U.S. at free over-the-air already a of TV is know on to any has a we're network viewing And the television. households. owned

meaningful over-the-air leadership focus, connected And them. Media new we a scale are media our our consistent television cornerstone Today, brands in the consumer our brands local are our growing strategy. and with from and Our all in platforms also creating national is of major through revenue through Local CTV of the our marketplace. available

Local revenue revenue industry-leading connected In helped results. this TV Media deliver fact, core quarter

fast-growing the the have are CTV moving network is six key the are television immaterial space. of months, additional attractive in adding networks most thus, playing onto methodically marketplaces. side, of and and These On court already into national TV Scripps today revenue margins. full all up and moves opportunity over well. marketplace as distribution. in And CTV important expense TV ION now we Bounce open our Newsy connected platforms next other the nearly the with

distribution diverse and relevant. Our are programming platforms

are streams Our and diverse growing. also revenue

structures that scalable and Our for from cost platform a profitability provides growth. efficient operating stems leverage

the We've able is while, our increase business, a who know to love goes my it track. our and the peers and show At tires differentiated So Those analogy while love the have the value local foot creation I in results we to of you that down a we've Well, been pedal much speed. we executing me well also appreciate stretch local changing on common the our investors our today. engine, racecar Scripps the know with television further. all slam to analogies. popular the can are we hope little around Scripps, upgraded as the quarterly broadcast on we

Jason. here's Now

Jason Combs

and Adam, morning. good Thanks,

quick I reminder quarterly just the earnings provides adjusted that year at basis. tables XXXX and an XXXX. of Scripps the Media will and XX, which illustrative from of Before February Networks look comparisons full a our on new be divisions both start, Local periods about for My today combined

results can our in press as-reported You find release. today's

Local third Local to revenue was revenue Political Let's XX.X% for the XX% begin up X.X%. Local revenue core third XX% than for increased for to was XXXX. ad Media division Media the retransmission advertising quarter compared up expenses over last Local million QX, total quarter. the $X results in $XX was revenue ago Media year. in and million was million. profit the the the $XX due QX Segment quarter. down election with of less year was presidential Media

from Turning for rose our of up to Segment $XXX for XX% and Revenue Segment combined adjusted of XX% profit quarter QX $XX guidance above Networks XXXX was was over the third the XXXX up prior the million, Scripps expenses the results. the year division. million. teens. mid Networks

from of share. Shared million under profit reminder, were Denver a tied $X.XX space. $X decline station strong to we estate in networks of Company of $XX and in the segment million a about launching had million share. $XX the and to advantage of realized We had expenses building. because operations continuing the As plan TV costs per just market unlock margin on took other real gain services The guided Newsy the of third air. and a a over expenses value restructuring per our continuing to QX sequential corporate to move operations This income quarter. and functional $X.XX sale income to from to the with by increased We more a

down cash term until million. includes our cash That and the the down voluntary for to excess continue from quarter and of a we loan be $XXX total million debt during future totaled cash restricted expect so this XX, use will in on equivalents in quarters. We to amount Denver $XX January. the of down an debt additional cash $XXX September year, far million of million pay $XX paying building XXXX that sale paid As

net new our agreements. calculations our Our political year. expect remained and our we XXXX our was at in debt range X.Xx low the our profile outlook, leverage leverage credit into to move billion, flow and revenue net $X.X cash next With ad per the Xx

give like for few I'd ahead, guidance to areas. a Looking key

expect for $XXX mid-XX% total took Media the the political down We revenue Local fourth to in we quarter range. QX. million last of because be in That's

to up percent revenue single-digit the be in core expect mid ad range. We

XXXX. Networks range. comparison We expect increase QX division, be percent Media range are range. percent in expected to be results also In expect to mid-single mid-teens revenue the the combined digits percent up QX mid-teens up in expenses of the Networks the QX to adjusted for Scripps in we to in expenses Local

We QX shared a expect will million. XX%. to division full-year services of $XX the least -- costs continue be about to Networks around deliver at margin

Finally, to Brian Local It's raised explained, talk XXXX about free to now here's cash $XXX flow we again. as now range our million. Adam $XXX have And Media. million

Brian Lawlor

good Jason, Thanks morning, everybody.

year's very industry-leading the betting quarter products the new in XXXX. for our quarter, Local of sports and accelerated even TV the driven surpassed demand core momentum TV performance the quarter, third For core third our significant connected to This Media pleased the we're be of advertising to during that advertising, reporting category. revenue in by advertising advertising rise

categories saw Excluding year-to-year all our auto, advertising growth. top XX of

category, Retail up to services, up up due improvement moved X% was to category second was XXX% our on largest in sports Our spending was up leisure and the Travel home and XX%. quarter, XX%. largest betting.

to had revenue In return TV on we major new our addition from local new an businesses Across our who bring business quarter, and quarter effort we again by expect continue benefited have focused advertising strong during core X,XXX of to this our to advertisers. been we In also television, by Scripps maintaining Last over viewers developed local ad strong to we sports new league are in bolstered you capturing new told I in over advertisers. sellers X,XXX quarter, to TV a our pay pandemic. effort is being brought a market, off. the televised the to will success to the consistent footprint, events.

for NFL, having return the fans in the the strong seems ratings good advertising For to stadiums been has dollars. more tune the And fans to from couch. have of back NFL our in encouraged

million sports $XX and than was collected In TV finals. viewing the contrary to more a NBA past concerns from on story good and addition, very totally Summer is declining. the That Scripps linear Olympics that

Turning to advertising. political

track as season. Wisconsin And Maryland XX Kansas, at and Arizona, Ohio Nevada, U.S. in seats House open races. competitive eight Florida, least and with as well have races fundraising highly Scripps Arizona, Virginia. year's in governor's to early highly U.S. we competitive political The reports show the of this Senate continue races in record footprint election, We competitive especially levels that for five includes next

nation's With Scripps. through expected for the continue highly same year's year record political elections, and we next call expect nationally, forecast another to at charged climate spending the

again more Our quarter retransmission continue this we subs MVPD revenue virtual than modeled. as to outpaced gain we expectations had our

We are universe. and with subscriber ongoing the of households as part growth TV pleased of the the pay monetization virtual

investment Gaming. a esports announced Scripps month, company, last $XX Finally, million in Misfits the

As media companies. are companies gaming, and more much the investors esports esports spending aware, involved time on and essentially and are in people money are

commercial as in update comes the Misfits business on we its on as Misfits and I continue areas We'll am board the Scripps, Misfit's for content evolves. our fans you For esports with opportunity it and advertisers key representing partnership connecting to is from Scripps sales. audiences. develop our content creating the

Lisa. here's Now

Lisa Knutson

to overview of we created progress Brian, and with just Scripps good all this brief our I'm activities months XX areas. business since Networks morning ago. division Thanks, our in like I'd pleased the the everyone. with key morning, of extremely start a

year-to-date three above season business of new a and rate to third we our achieved highlights. we've to of up the Through designed what year. networks more efficient representing XX% the and we last initial growth are than networks an than track the Scripps synergies and over organizational we upfronts deliver launched identified run and overall dollars XX% successful expect XX% Katz And still the for growth Ion. division we that Scripps year. some of promised very when U.S. air, our We reach of created effective more XX% TV realizing households. networks ION about this are year. revenue expectations all growing upfront we Here acquired for achieve dollars, to was We and this quarter, ad XX%, nine growth significant outpace on completed with by structure We exactly

operations, most set over-the-air opened co-located studio created after launched and our TV X. with built an hired network programming Atlanta streaming our in master bureaus, of lineup, Finally, preparation, months local up operation Networks our building. we popular news about on existing Newsy Newsy October news XX XXX a We journalists, XX/X control a

on tremendous free delivered has based non connected to its partisan, TV platforms Newsy news. there the opinion the realized already has with nearly success and reporting fact all approach and

very now Newsy to with device. to mobile are We pleased bringing or everyone a be computer television,

revenue our performance. to Turning

third & Gamble, we're was categories, Procter results. Google, big response the of including and multiple Our care networks including beauty, grew Direct by from seeing quarter XXXX over advertisers, & than across quarter and third adjusted third up Scripps health XX% advertising XX% Pepsi top General grew insurance, pharma. and Johnson more health Johnson, our and XX% pharmaceuticals. quarter, in quarter, driven market during spending national the about significant combined

by led the health open Looking performance expect period. quarter, direct care enrollment response, strong to we fourth another from

half XX% nearly account upfronts very our during QX QX foundation our earlier of will very quarter come and lay we revenue revenue. season We year. a of upfront the booked for expect Commitments successful next dollars our revenue for growth the this More year. strong from than for Dr. our from upfront to the for

the revenue scatter for quarter come the market. Just of will fourth about XX% our from

in Scripps every quarter, demographic front, its post day an network saw the in we on programming viewing improved total share the basis. On group third specific a of key

can by best from captured that of Scripps' over-the-air ecosystem. all the over-the-air addition, overall, anywhere And networks we capture quarter in rate the out September. time viewership on in our This performance in national capitalizing a the ongoing prime In marketplace. advertising through leadership illustrates leadership we're seeking viewing

we the In addition air, scale the initiating an aggressive gain are networks XXXX, to dominance platforms. are distribution. moves to connected TV schedule our Networks making the Through Scripps over half on most CTV significant launch of in first for our of

is VizIo's be watch services Sansung Bounce and the streaming free already on and seven service, Ion between we'll and and in Samsung will available example, other across service December spring. is on the fast February. on a of number For launched launch more TV+ TV+ platforms

mystery platforms significantly We expect you CTV. onto major TV next to and add both TV are Court Newsy Court know, already as distributed grid and year. on And CTV

questions. QX operator, the grew over to the of TV quarter, just we're connected ready revenue third that revenue and and our And our be XX% During beginning growth trajectory expanding XXXX, expect of now we marketplace. for CTV

Operator

Please [Operator Company. the Kurnos line of Instructions] Dan And first Benchmark from with go ahead.

Dan Kurnos

to I then results, other QX, Great of of puts phenomenal into in some we've Networks contrary the and maybe kind think, running heard and takes the marketplace.

you why you on questions ad of you and don't then have have distribution ask subsequently, for still you Lisa, you? And Adam, -- a CPMs you getting I'll Well, blended that either to first, So breadth the help expanded what's your maybe that do follow-up. me, available guess, there, environments. of two more in kind you size, as out talked that the see terms having to Obviously, sort impact coverage, to of dynamic into I my insertion left about and get of you there? sort you incremental us channels. lot get talked opportunity start distribution, can but

Lisa Knutson

Yes.

think couple there I Dan to there's things unpack. a So of

terms distribution, In of country. XX% we're said, networks of I -- fully have our of as OTA the each distributed

networks. our You'll all that of years see that several optimizing to distribution across over the really of even continue next expand and course that the we'll

see XX% some So number that's still we have growth one. we -- distributed, When you're there. still potential

but TV CTV mentioned of that on Plus As and over on the the networks in we really not year, area, that for already as a launching you see only see Adam, growth And year. course growth us for CTV, launching most in next our big platforms to Bounce the Company. growth Networks, as want for ION, this may CTV I of over and as area touch big for a we XXXX, ION Samsung well. Company

Adam Symson

as focus already expect CTV do to brands CTV platforms Really, what there I you more space. to with on mentioned we expanding pursuing meet CPMs serve as with to the the having obviously, Yes. we be already aggressively see the remarks that of we've scale ability distribution our are but CTV for CTV and dividends able mean bring we to in some them on we're my where division bringing a the all our scale, has Media linear now And and our advertisers critical of the needs prepared we're are, limitations, component. measures ability to and see advertisers. seen in we think, to serve to There our core I mean, them to higher will them continuing aggressively right on Local broadly, we our than connected really our We Dan, I CTV paid know, been products ensuring push during what focus all is of platforms. our really that to CTV forward national And local. sell on it, has, television of to but the enterprise-wide, relationships that products eyeballs their CTV I the right the as campaigns with. us. critical help see

Dan Kurnos

you even spend QX, know It cancellation. that that's And we just like Lisa, obviously, clear, kind in Viacom that guys, be are pushed highlighted commentary. sort flexible of your CPG really like out we and firm for commits, some of you was I sound be willing though then first heard can issue for of QX to to and anything, an upfront commentary I remember and dollars possibly the into doesn't incremental no all those there's time if guess,

anything on seeing can that So that if dynamics front? about talk if the just if you're -- you there,

Lisa Knutson

foundation, across like necessarily seeing the any I the cancellations into say, upfront of lack perspective, in scatter say laid visibility, Yes. did there. industry, see a I and from others market. not some We just good we we're would would an

scatter is the gangbusters. shifted we quarter inventory So into in quickly out some going that of DR and of fourth DR.

was on so to maximize yields a across networks. our move to really it continue And our part

Operator

with Next, to we'll Michael ahead. go Please Markets. Noble go Capital Kupinski

Michael Kupinski

and just Anyway, quarter a a potentially national could then networks the the a for ATSC have fill and that I'm on new we to on of good launch guide. forth glut additional strong it's advertising obviously, the to standard I wanted additional I'm national or Congratulations because spectrum if foe friend if networks. create X.X. great about have ability and spectrum. a wondering the networks And ability wondering think to potentially to broadcast so

of you how more kind thoughts we're Just course, how have looking your thoughts down on give a launch the couple just ability of of as we networks? road, the your things networks would perform see And to the -- on see but unfold. years national

Adam Symson

and absolutely a were is we position it networks. additional into built a such we've today as The expand have opportunity to that we the I friend. scalable see to to reality platform respect a have distribution leadership with

it's us, a spectrum actually of matter especially of we essentially switch, a as the For a result own the deal. given ION almost how of flipping much

the Nielsen able So in space. that take recall and efficiently year, to were And households, actually them minimal advantage view additional to launch actually expand have, in monetize competitive advertising revenue would true to of very have of a to you both rated. bifurcate enough choose capabilities, with with of ownership be to national Defy opportunity The think, Newsy; them X.X and to clear networks to additional gives were this order it fact get XX% multicast spectrum expense. three U.S. lead the the investors have ATSC we we that us you scale real, for we But ideally just the can spectrum. to than or that marketplace to more instantly, I networks, your given

Michael Kupinski

fourth I other coming we like this forth. of the products to certainly, happen it might But any know visibility about terms prospect kind in -- obviously doesn't we Brian, but the the do out to environment advertising. of is do My auto sound quarter question on about it's a shortage dealerships have mean, quarter, of kind kind environment the that going you see we know year? any to all seeing move chip market you the as I next transitory or of of visibility advertising. so better the from when maybe, and in to look and first have

Brian Lawlor

next for the remain rolling brand. in until individual brand of the a Mike, the shortage or clearly, many good Brian. our it's dealers. Hey Look, from And dealers. through primary car flat individual active. advertising, They creating consistent just are local The half local is it's is far it The the the expect still quarter, chip little And that I from that off be that there challenges manufacturers. dealer the groups they or their third the markets is have. used first of news inventory not were does product pushing dealers the will in think keeping bit models out dealers coming decline I out. starts I But and by vary will year. think whether

cars some back. or that chips. have get to some brands access We managing are brands seen better, seeing done some to the of farm We've having starting

it dealer think be active. brand individual groups. be the probably to that But had manufacturers to will first dealers And the will So handicap depends from the I and the I soft if think year of it, to still I continue half brand. really

Operator

Please Steven Wells Next the in with go ahead. of Cahall line Fargo.

Steven Cahall

Maybe first, on just Adam. CTV,

there's wondering at just little the been on us Just give in things home data competition point, might is. some SAC digital a in because any that we've if, you CTV like cost bit And for what heard revenue screen. more your of

build you part you're thinking try as about curious drive the you the that CTV I'm to viewership business? and more others SAC like So onto networks Newsy of how as

Adam Symson

a space. schedule, provided now, upside. all we've entirely And is the brands she provide you, that it We moving our our literally is but it into got Lisa that aggressive right see rollout us. plan. an CTV described matrix we to of can't Well, has map road a for

get premium order business to is services with customer move of expense into incremental acquisition. the then these CTV and of channels for no first programming the really us to begin to all do so And

can thing space to first it. see then as course, of put is customer of And I still people. channels I brands, premium we distribution, monetize our our so The to that in ahead. break going CTV now. from to in efforts But revenue would and significant that for local color making to not out We're national growth in we're our CTV the acquisition I front do you'll the expect very the expect us continue immature. space. significant then, this on the get

this the As to component focused an is television. and We're audiences I they're said, everywhere important serving of on future very be. of advertisers going

us should actually into in us for you our order so to enhance margins operating And improve an And time. in our leverage that us expect for and as we it move see to to opportunity our business aggressively space. brands our over CTV

Steven Cahall

through I'm since think we've curious upgrades been I But we go cash what's seriously, half you expectations every a back of on Jason, quarter. outperforming expect can few then, had to year. those And flow your move free recently. the assume just the I as

Jason Combs

rebound revenue national So catalyst both local year free has has throughout driven strong move cash in really the the that's the driven been by the just that. and been rebound the marketplace. flow The

the this been upgrades that's execution flow the the really two at rebounds year. in driven and sales free strong point throughout it's So cash markets guide,

Operator

next question ahead. go Wolfe John with is Janedis Research. Our Please from

John Janedis

talked to concern mean adding was But in. more there games can it with me start Adam streaming you let in for what expected on the platforms, services the NFL a how when but broadcasters. really I based just lot analogies about answers, of let the the on

guess, the there's the the to And you're on broader then couple of in increase, months of And see? segment? I market, chain to relative else can impact And you're does a any and across relative maybe to hedge issues talk is what to so way in, share everything DR a what seeing to business? been you the in the if DR provide growth speak there a separately, if market seeing might supply

Adam Symson

question. the for Thanks

the NFL, now, across the for here you good mean, and today color sort board. the I what engineered impact the for gave NFL That's Brian right the the for So their with respect contract Relative elated good I see XXXX to look, of ratings actually we're we our marketplace. obviously and with on way now, to seeing some the in distribution. I'm rates by think advertising new has contract, the higher NFL

they They're for engineered have eat their more too. can going for opportunity bring it to both to their importantly, I and them cake think that us, football on they've distribution broadcast. financially digital so their maximize more And distribution platforms. back

football more That's cutters and just growth to nevers, more given the really to as I because year, back the be of over company Scripps, having couldn't makeup. good next basic. portfolio cord air. decision is contract be further going NFL's ABC excited The be choices to first, football. So our for going the marketplace, focused broadly, they're But their cord of maximize XXXX in distribution the a OTA for growth is have going to a more two that's over-the-air for catalyst about on

going subscription their when navigate see is try Monday first multiple different where that for games confusing and we economically choice The Thursday. and up and to to watch to have they're to as Sunday, going sign And services and on clearly just then inefficient. to be

The a TV for other to option will be plug-in those same turn and digital for football. antenna live HD to free consumers broadcast

it's the good over-the-air will to It's be Scripps. marketplace, is TV. on American going be them. makes going sense make the football and how consumers the to football given the It's for to how position good most choice really More us, sure understand good choice that in for NFL. broadcast for free obvious, the for So fans. good that for our we're choice make And to obviously, that and to make

rights rights, So what digital only positive am digital of we contract. not OTA. the we're about actually the NFL very means Not new for about I but the in see concerned momentum excited fragmentation

Lisa Knutson

chain. Supply

Adam Symson

supply sorry. I'm chain. think, I At this up answer. that point, in still caught

one category in In quarter. seeing up move issue is talked in but any category, affected. that's terms as bit about the been That a growing really fourth. We've the material. there, through A in been we're we here and little adversely supply nothing Retail automotive. retail up chain, of third, fourth not has was

in my remarks now seeing our fourth Only XX of down. very trend of top prepared XX said the was quarter. categories, through I October automotive strong. We're As were was same them up.

seeing we're beyond auto. chain just real supply of So no impact the

John Janedis

I they dig I Or to increase, to just of that let's that Or little DR just all into that would environment? more provide just the are mean, kind of sticky of in bit same? if direction were a bit say a are does because a more. hedge? be it Brian, ask advertisers, to those wanted

Brian Lawlor

Yes.

local I'll side. So the on start

result I That our think air last the and a in able over option an having But us actually our us CPM. a is I And the developing talked year. to quarter. new commitment are new advertisers it's I be that's inventory, was deliberate a fill ton DR our to increasing business, focus needed on again, that, a available of haven't about mean, inventory. to the X,XXX always We're of as for success. of pressure putting lot on it. again, we for

I'm going probably fall back haven't marketplace. active on So the over to there. who to throw it we is to But had more Lisa, DR

Lisa Knutson

said, on is that's quarter, high. are the enrollment. John, really And yield mentioned priority the mostly DR fourth as driven lever healthcare that particular, I And earlier, in our in Yes. networks and are open the fire dollars, our where across maximizing our the by CPMs I pulling in

Otherwise, where place yield. better in to market. not seeing continue where quarter we're Like lack visibility then buys rates, at into they're are Buys necessarily throughout the DR rates seeing we look cancellations, We'll we're just-in-time continue glean If like we'll as beyond, of maximize have that's I higher inventory. our just first and certainly not the happening quarter. to in scatter but said, sort to placing and market. a visibility. just the scatter we'll will can the We that versus of continue maximize -- it's we

Adam Symson

also, to as now have said But market. remarks, scatter little we reminder in the fourth right quarter prepared a had just you from the very what in your exposure Lisa,

Lisa Knutson

Yes.

Adam Symson

Right at -- XX%

Lisa Knutson

XX%. Yes,

Adam Symson

XX%. -- of XX%

management networks the us out machine, a the acquisition behind I some that on side anything the yield And insulated really as networks' saw bringing fourth together has that stands seeing from other I you're the think networks. a for that is result. guide reality the of thesis think our So ION at really our quarter you and was

Operator

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

Craig Huber

Question on costs, please.

some cable can quarter look networks' you next side, on us preliminary networks' investment the the it I have the impacts side, any are doing On the just spending -- cable into you think please? fourth but all about help follow-ups. year, how also And guys

Lisa Knutson

Yes.

earlier sized had to we were terms plus over-the-air million year, we of somewhere Craig, but capital million in building a the a launching in margins dip from two Newsy the year. perspective, this certainly $XX in bit range where So expanding networks expense, our $XX that's to launch as seen also and third of quarter, little both in and -- next you've a rebounding

in So we XX% to expect be the in XXXX. range

we and and and Ion's they that networks were of True fact, are two ION In So Cubo Real already new for those quickly former the this were Defy the years. growing XX Plus, year, around networks which were multicasts, earlier that on outperforming launched networks,

networks. think So growth those minimal investment is we're there. growing opportunity the I we what for We've think, made,

Adam Symson

XX% connected in one cable just the in of growth another right? carriage ultimately cases, everybody see of audience is let they the that cable it or marketplace, we're Craig, air, way size. to networks where of them into one that have can't these a continued And marketplace many homes go we without These U.S. sort I and reminding do networks, television distribution sort thing, and decline. aren't over Cable moving but reach in expect

Craig Huber

could the I maybe wanted now? a Retrans, And couple states the that down, I those give are percentage that's that of TV but your this, top to a if were sports on five Brian, you do also missed an category Is betting. how update stations much number you where the then of the in betting. think ask. that And nitpicks, subs, And sports have going I quarter guess, you, year-over-year? maybe of here? I for retrans ask us And net in

Brian Lawlor

Sure.

we're in And improvement the than there. over X% some under First were of quarter. changes, sub so in to less X%, the Craig, relative months, course down XX incremental then all, trailing improved of We they our five it's driving then decline. of in the top category it's, betting, of terms up of it's travel by the that. sort category, which And segment because rolled shifting well, our to far, and a sports leisure

We and also in travel XX% leisure. lottery casinos now is events, have and that. But category and like concerts, than stuff more tourism, of that like the probably

it leisure five, performing be now which did by the would category, is surpass is second highest top and auto, inside it the third. itself a up rolled So

it, half sports In our we're rolled now -- thinking than less terms about of still out it's is and betting markets. how of

Florida. think about is to think Right of come about our we I New and Louisiana think biggest on to pending. still York come. board. board, on are to we about some California. is is When now, about Ohio, opportunities Maryland come states

run. a So it's been terrific two-year

established rolled the September continue. that expect there, and Indiana and spending going in in of we to of out states early in it's just think I there's Michigan. some big It and Arizona, on

And we other online, so our of ones, as forward. opportunity especially some now a moving lot bigger come see of states

into So still cadence. some beginning. I this And states, think states, the it's the nowhere other And for very is much normal for it's in game. in a early the just look, it's advertising settling game I think

spending activity in majority That's happens I I look think of introduces the United States. and the sports the game. the majority sports other over betting and we betting, of as Europe more becomes sports in in places, the of as think more country case it at yet not standardized, betting in

involved gets is and moving kind and that within big think, that's road. I a opportunity forward. engagement become much betting for down us years a standardized, and And opportunity as of rules there's more rolled sports out But the laws for active the game, a of so couple

a think to active. So which of development, And we launch next most beyond in, I good phase, is that settles years spending. its as of it moves the couple then I think it have

Craig Huber

the you digits. question, Brian, mid-single quarter, think should other I my And fourth expect said your people for core up ad revenue

take out please? auto, If number look, that you would how

Brian Lawlor

Obviously, even couple than ICRA. points A better of better.

had -- over year. $XXX We political comps million five of we're are really easier. in and our a little last So weeks course,

done, all performance, see categories. said nearly we automotive, see all But Except third is strong had expect, start. of would it's growth as we will of for clearing off a a as when and out top and we'll boomer October result exactly kind I what of I to in would a the we -- you saw great you'll So think in that. November our expect very of quarter.

Craig Huber

station And things. slowdown question, you U.S. my sensing any the TV your national on at there, please? your guys, Curious then look last are your networks economy all thoughts local at in of side also you as and

Brian Lawlor

that XXXX, but a and quarter first reported go than with better XXXX and then our dip we throw just was I'll in of quarter major our Lisa, third that's to automotive. it third of

that think in performance I local -- you activity. should see new strong and and business the

I view, think indicator that, very a really the strong that's our is from healthy. economy

Lisa Knutson

I Brian's at not any all. seeing We're pullback sentiments. would echo

Operator

questions in And further to the no queue. presenters, we have

Carolyn Micheli

Have everyone for thanks and joining good us today. to a John, you, Thank day.

Operator

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

disconnect. now You may

The E.W. Scripps Company (SSP) 5 Nov 212021 Q3 Earnings call transcript