SSP - Earnings call 3 2023 | The E.W. Scripps Company

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Third Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Carolyn Micheli. Please go ahead.

Carolyn Micheli

Thanks, Don. Good morning, everyone, and thanks for joining us for a discussion of The E.W. and results financial Company's business strategies. Scripps

actual other and cause that Included in SEC our visit on financial to in of the Included can conference public and or replace will of a as measures statements do are GAAP companies' are with to this measures filings. the forward-looking statements provided certain outlined supplements are scripps.com These are may financial Factors uses update earnings discussion company. of reminder intend non-GAAP are call measures for in the their link to not measures valuation a call to assist and forward-looking reconciliations any include differ and to and information financial non-GAAP statements. we webcast them reported and may replay GAAP We management our differ. in that more that You accordance results meant from GAAP of formulations. to our our the analysis call. A formulated metrics not make financial and release today. in differ be not the may this

Scripps' Officer, CEO, Operating President morning Symson; Chief Adam Financial We'll this Lisa Knutson. hear Jason from Chief and Combs; and Officer,

Here's Adam.

Adam Symson

Good financial be met morning, results to exceeded everyone. quarter or We're reporting across expectations. third pleased today that the company

executed high despite level a a teams marketplace. at sales advertising ad local Our soft

their to growth a general the revenue On spot, side, sales response continues be market own. TV the held connected network and direct bright teams while

structure led profit stronger-than-expected continued a management, the efficient pursuit number. cost careful segment expense addition, In a of supported by to more

as wind this year. industry, macroeconomic Alongside the we face down do further rest we headwinds advertising the of

Jason seen top as distribution the TV are growth. fueling get disciplined Four, core Number network's continued rights, we ever and we national fifth, and double-digit revenue the ad is across strong season Media green with the broadcasters free of X the advertising for revenue national categories sports connected Local expansion core our year-over-year. political are to will some with, year. environment local two, the quarter, our we on have shoots growth Lisa coming really know, political we flow it appeal advertising rate industry. local ad will contending here's distribution for But new revenue. Three, of quarter the as high-margin have all revenue from project the and and and easier to profit into coming people robust making organic us media like that just you advertising benefit at beneficiaries presidential benefit upfront TV was give more year the will in primary And projected ahead cash that a spending, advertising it up into market. about in the up for audiences than now we run moment. Despite Number the billion from dollars. educating into the and it. full fourth we I scatter head a for one, free color As weak over advertising growth set the the in from we macroeconomic conditions our $XX watch for why. Scripps election

I'll in retransmission start our outlook with ecosystem. the

agreements has fears XX% and Annualizing distribution growth effect ecosystem in experience lower distribution more for been The benefit TV are tailwind. of leads net The XX% the TV dollars. and year of gives channel the net than negotiated, a XXXX October, without any fitting benefit view our that media our Street as programming including strong revenue lineup. next is in the lot to that we investors' in the growth households reported we these covering we benefit the us consumer, and negotiations promised, said Disney-Charter local pay MVPD A future now of to dispute. But of about the pay XX% have very out off broadcasters, will As successfully of completed therefore, broadcaster represents especially especially the concessions SVOD in the the services base. after the relationship, and, channels, best bundle Charter believe since about our blackouts. me

deals Our to testament MVPD proposition. negotiations and the a broadcaster are of the strength new

company over receive a now in of last as expanding value retrans. both the several new of result the years on strategic to has come rates, negotiating the we addition capturing our renewals making the good and creating market are Our by number value moves because that been full stations

example, Golden Knights flipped and Vegas affiliate our independent Vegas The an programming. Las the expanding we XX, ION Vegas, an as our to joined carrying ABC opportunity station, in significantly. For distribution anchor there, new advertising fees its station

stations the service TV pay getting paid us our more for of in strategy. driver key erosion is flexibility So to as platform direct broadcast in higher than a despite that a getting before, result nation's the landscape, on sports Scripps comes our and of growth rates now

broadcast that's the Linear to unify is passion in it, to in this do creating favorite as and advertisers. television passion and broadcast leading their a know an And the we're this. TV, renaissance game. real Scripps and value teams feel us it of television, the bring distributors and new by Second, athletes front material has specifically their know leagues does it the love This the Americans tapping into fans so for made community the sports. unparalleled and The know is live time. reason ability of teams for to the in it,

partnerships local we the Stanley and recent teams, Champion, broadcast Golden X Vegas Phoenix. side, Knights, National the with Cup now Coyotes the Hockey Arizona in have On League

fan Knights that growth to games than Phoenix, this household have region both now ratings seeing bases. More Golden the their Arizona whopping And ratings viewership independent the broadcasting new last. doubled season are the regional generates primarily receive their We growth so compared of TV advertising And have audience reach right in across can ratings multistate their games. In we're their Las revenue more far which the to Vegas, meaningful tremendous increased markets team's for and simple. in every large in incremental from equation significant last a Coyotes' XXX% higher core to distribution they revenue revenue on higher stations year. distribution deliver now, through RSN Scripps is local a and The air.

know free MVPDs our their independent important those quantify new core virtual driven each core these rights advertising local sports the cash sports year quarter growing advertising local deals. the X be we pleased just is local core we're to X programming deals. And and with portfolio's is for With line local able lift and lift retrans begun sign, adding by adding fees traditional On is percentage we agreement how deals. customers. our expanding core in flow. NHL for our projecting full into both new the X an create stations the value for And media incremental fourth sports I'm advertising through guide because to profit to just of generating distribution rights this our the least to live revenue XXXX, on will distribution distribution have top and a grow, at side, points point to from Baked X and side, percentage margins

to completed on A nearly increase help the all on WNBA TV the league on TV XX%. national very season the first ION. over by ION while distribution our its a FAST, the opportunity X/X as Night air, have level reach over-the-air We're for for the significant this well. us a is Spotlight We XX% carriage watched successful power new on signal, connected pay season Friday reach Sports harnessed TV of the to our viewers pleased with and of league. watched WNBA

too, advertising we Scripps, new live sports Here revenue coming accounts. new-to-Scripps the sponsorships of value generated XX% drove from and from rights with for

Sports, tap beyond. to for leagues recognize powerful growth into know, live good And in unit agreements sports national rights the ION's second for with Scripps XXXX to commands the cycle hefty reach around very power for a us WNBA our premium well we and rates. the near with our setting similar well a and the season future, start. that above average partnership advertising In already as sales of off into We're expect with you up

As marketplace. And enthusiastic TV the see, for in third is our the Scripps value ongoing you good for will advertising-supported can of reason create market. over-the-air XXXX about for lever the growth television opportunity new

to rising to of consumers our digital told company's accelerate antennas. revolutionize OTA's some face at we you we the recognize And still we'd relative a saw tablet of an Given viewing, TV a But free why rapidly DVR an as this we up campaigns opportunity our work the much antenna user streaming increase experience in the working and phone and bundle. That's on channels in in through to TV baby house experience the app. pay modern aggregates OTA Gen connected in with we FAST a device allows or over-the-air and to your boomers. Tablo, relaunched time of to TV be year, drove growth. Last that by you reported TV, makers antenna marketing an that August, TV appeals any digital with challenges as especially indifference costs need share as outside sales OTA Z XX% that It to stream the solve over-the-air we've watch with. to

a onetime it's can purchased a or digital cost, fees. today bundled the without has Tablo be For consumer, subscription antenna no new with and

college at enthusiastic real FAST months free we all very this reviews. X tablotv.com. get professional and of Best directly channel passion are In through programming, game Sales sports and the have been the soft product. network NFL local Buy and our on Amazon, broadcast. launch, media live owners partners, seeing retail and have brisk for a the Tablo since consumer People premium every and

sold Just this Home was out the week, on and minutes. Network Tablo Shopping live

future this be will share it marketing We're quarter to calls. in launching and Soon more campaign the on expect earnest walmart.com. metrics sold on

for For now, into know so year, will turn can TV what's sports, eyeballs grow important the over more that especially live dollars. we to Tablo viewing ad is

efforts flow fourth linear our to connected monetize in a quickly networks free Turning $XXX driver, new business. created SaaS our and the TV, our have distribute to marketplace million cash

We broadcast expect the we election driver that annual the and is cash year. And flow $XX peers election positioned billion are advertising presidential high-margin the next to our double-digit political when course, million capitalize of projected year, spending. on fifth in best growth on in the of influx $XXX

which drivers the us X carving work, of out benefit marketplace a growth remain At paint focused the businesses brush a as for expanding to And because graveling on tackling streaming, creating into their is a in same these while the the clear our efficient, not with effective of I challenges constant and media and aggressively ecosystem. media are that, path long-term chaotic Scripps, XXXX high-performing all no irrationally to subscriber clear. near-term valuable is ongoing encourage profitability. investors with in leaving the this in path reorganization durable Lisa more companies will and cost valuable both discuss real our Scripps to near- is Beyond that We broad business. and moment. niche churn with value off

first to accomplishment recognizing for an I'm end about Award National Emmy News. like Scripps by I'd the which very proud,

on and you garnering we objective, platforms, Emmy in America's with its stations on it the ago and and technology and is ratings News Newsy audiences. As now to our strong a XX outstanding know, distributed impactful built testament This our environmental science, It's coverage reporting. not organization but January. bought news need fact-based years for for just Scripps we've rebranded national local local

here's Jason. Now

Jason Combs

Good everyone. morning,

quarter, third as we company the in had we we on set expectations with For all results segment exceeded in or QX. that met August, reported another profit financial significant beat the

by in Our overperformance well as stronger-than-expected from continued core was Networks profit Media revenue expense segment Local segment the Scripps driven management. advertising as and

million, quarter, because Scripps third our connected $XXX response guidance the was better-than-expected direct of For TV exceeding Networks and revenue. revenue

X% due distribution from in only profit to programmatic Networks Media revenue XXXX agreements. Media were sunset Networks' down Segment up product, mainly up XX% in which of XX% advertising the $XXX back low-margin revenue. revenue down $XXX you Local Local to of was we In of Local up about Networks' QX. our about revenue period. about connected began year and election from quarter. impact X% fueled expenses Scripps million. if prior renewals year division, prior from TV was our was QX the absence the quarter, segment was cable in by total X% year was from core political $XX the million, revenue million, to the the year prior our advertising satellite out

Shared the we to of Local are we the We quarter. loss this $XX per completed share. for in all pleased were have with costs flat XX% loss. The results. Local $X.XX Other, million. expenses and profit a labeled third million. renewals expenses was households a quarter and Media corporate to $X.XX per the the Restructuring million for were reported announced the prior subscriber for the that work. and January loss segment year, to shareholders Media that of restructuring now $X.X the reorganization the or In Scripps of We year accounted are were was up of $XX segment company-wide quarter services attributable related share million. $XX very costs

As cash of million. and quarter equivalents cash end, $XX totaled

end calculations and at per credit in net Our agreement. was net billion the quarter our $X.X debt X.Xx our was leverage

X% the Networks but the programmatic the about upfront expect in XX% division, softness weak Looking you discussed. the back quarter of The in to and ahead down of advertising we to range, impacted quarter Scripps In the fourth is down be spending. direct by being revenue season if out industry-wide response products the only impact we fourth XXXX. ongoing

fourth expenses flat. to expect segment Networks We quarter be

We the to in since low down Media year. revenue a this big to election range not be percent is expect total Local mid-double-digit

moment mid-single expect local see quarter our to environment, key a to to start digits. core QX industry percentage core benefit local expect to X Lisa give the X categories, in the be with a will core in of due ad agreements. strong including to Sports our tough color ad We more revenue auto. low up Scripps lift point we about a In

gross XX% renewals, now $XXX expect pay Local like we increases to net completing we costs full spending, year and about full political political the year key I'd expenses Sports. to items. $XX we the X XXXX. Back said since expect stronger-than-expected contentious Now XXXX of costs a distribution of are revenue from revenue on stations our to associated from That $XX ballot dollars issue gathering services We've quarter, retransmission local Media the revenue touch Ohio, full to increase in quarter up by million. and million. distribution reach roles be includes Also, Fourth had with be ad million at Media more Local fourth especially our in year to least range. shared expected than mid-single-digit we've cost for at Scripps expect news to and

Networks year $XX loss Scripps within to labeled our discussed. Tablo educate also segment we're the expect We a still Due our fall to free over-the-air million. $XX about about facing million flow at range, adjusting headwinds and Other viewing continue the macroeconomic ongoing as our end, to previous promote it million but expect $XX we consumers generate to of and our Adam device, cash division, the between low free full We guide. as

ratio the X-quarter drop our our of pressure by from Because we upward and we expect year-end. some to on trailing economy leverage XXXX from continue leverage because strong quarters calculation,

glide We're to strong free than on our turn TV end strongly to and from our revenue that That's place our track listed, paying drivers Xx the due $XX reiterate and the realizing a sports in of our that I political reorganization. QX revenue year cash to continued down priority expectations continue revenue. And year under to annual savings high-margin next of distribution allocation a we on of capital see expansion to debt. full to path highest want year. connected presidential down this rights company flow with from more our million we including advertising, from X However, of the bring that Adam

to we middle reach We $XX run around of and track, as of XXXX, we've year-end by a annualized rate on expect XXXX operationalized the million be are savings. savings to those in discussed, mostly

from Networks Now Lisa Scripps both operations. to here's Local share highlights the Media and

Lisa Ann Knutson

quarter the work. Media this trends Thanks, up up in October. out sixth XX% would Improvement, seeing on morning was up good of morning, some quarter ongoing auto positive X%, in how shaping largest coming far update and everyone. ends our third advertising. Then our it growth. QX and Jason, Retail territory, we're In categories, was I'd an in Services I'll restructuring up. political positive is start news Local X%. We're seeing to like advertising color on up with core also fourth consecutive in XX% auto be and so was of good was category QX if October Home give

million The spending local third expect the to political of share now also $X million optimistic year's reach the in since those about broadcasters revenue lion's the election $XX years. off-cycle capture at past presidential projected of revenue was least than X large levels election year. this We quarter higher QX ad for of in continue next dollars. to We're

to Networks division. the Turning

Our response expectations ION Mystery, results Bounce bolstered revenue outperformed third in quarter by points. enough in connected TV and percentage to and Core beat TV our X ION, direct particular, growth guidance CTV. our

we Networks' quarter, upfront season. weak the the the industry-wide impact fourth to For of began see

are growth revenue The Scripps of up national whose in networks revenue and XX%. in the be up seeing And upfronts our were whole areas for TV about declines to of X% were year-over-year. overall nearly from We CPM's estimated networks the this alone XX% year. volume upfront Two is dollars nearly in of was Bounce, portfolio in rose among for far the dollars XX%. connected down upfront ecosystem

viewing platforms the Connected TV In continues alone, weekly of and increased of outside well. networks year-over-year. SaaS our be prior the quarter upfront as area a us XX% from the big the third on growth XXX% to quarter for hours

a product total mid-teens new include end and the impact have we agreements expect nearly total if percentage to early XX% for revenue. CTV in year-over-year coming million be the of projecting the you we network year back online sunsetting. legacy dollars we that in These at year. increase $XXX said, are As a XXXX, increase, out some we're will projections programmatic the than more in And

leverage to our give close audiences intended, the growth Now the best we and the work of you I'd people announced on margins, the of media January, company as update capture our serving opportunities company assets The we our we unfolding, out the aimed in improve strength ecosystem. in our all our to as and communities. Back to fuel transform in and like aligning of and at is a major position restructuring reorganization an year. the reorganization

as the we with said, a such As coming know, savings of cut to of eliminating spending the doing $XX rest growth. our thrive more Jason work to through company contracts. But from are can't XX% way and the its that changing external we're about from landscape. is you important most to to in what reorg million expecting realize reposition ourselves than positions And part as media in the vendor

to reorganization approach Our has been the fourfold.

and Scripps First, combined separately Local in were divisions. many roles we Networks have that Media management corporate housed

are enterprise. So have the we their now responsible leaders who areas across for

who a we from For more of sales Offer with both vendor work to network charged is effective example, ranging hired sales sales thinking of local the Revenue already is execution, His holistically messaging and benefits, station to growth. revenue company's Chief consolidation the NBC and leading about better to contracts. oversees and use Universal, technology from

roles, for on our a in is appropriate our local our line leaders as stations, broadcast peers. have Second, broader marketing centralized size human finance company in and in have of these way and that our a with teams resources, including taken local they

is News station we research and the These on focuses news. how their Scripps communities audiences, our X our are adapt want Hispanic filled quality audience approach years, households. stories Black, newscasts from of over what it audiences on including by our it media learnings with XX anchor are rural local live growing. last we viewers in It stations. undertaken and to objective News out in local of Scripps extensive Rather we anchor front One a rethinking informed now on week newsrooms our redeployment benefits. News so telling local This way Third, our We've stations desk, future. from and Scripps We're has the have and reporters key than with from puts in the journalists content stations in running a and put serve studio the traditional in of allows cost. change advertising local national neighborhoods. We're brand also use and the of more to our their the more roles local new the X large can on produces markets, sold local XX broadcasting steadily cities to News, ratings a local Scripps saves in audiences programming teams with are coverage some the field. airing will hours

year-over-year example, September stations XX% Rush Morning use For live delivering sustained and of from X%. News' News' program to saw build is programming that Scripps June viewership Scripps growth by ratings

and reorganization and Brian Scripps they out part was build fourth Brian has as all It a sports networks. been of the to and The think his -- been from have national very to Sports our by crucial reach from as demographic has emergence media assets, important our the depth ION the of our people Lawlor. and other led local support of who for team of reputation about the partner stations of market

assets where the national we're deploying together in unencumbered local both and organization. are creatively putting deals, they from Networks, Scripps As sit Media by Local we and

of root. corporate and local value as realize transitions these our of most our we'll stations year, our of wrap changes the first in up our half take true complete the year. will level But work this savings will come We next their after full transformation

even will value on new advertisers other The enterprise with forming we're and where every are We connections our quality platform creating sports programming propel growth watch audiences Americans and news, and deeper our and perpetuation. through entertainment TV.

impactful journalism. our to like awards most by out calling the recent I'd close of

we first news said, Emmy our News. to As at are national proud Scripps win Adam very

flooding Billings TV Chancellor won a WTVR in X and Award award. And University's there reporter is in first for Excellence this with Journalism. to And awards, addition, string into in the stations John local Investigative we're devastating XXXX. won the for coverage Scripps Phil sniper Nashville investigation in now Williams, news honored at an with of were Phil WTVF recognized in for local In Murrow was for KTVQ awarded national of Richmond questions. operator, ready Columbia be Chief Reporter shootings

Operator

Instructions] we're Benchmark. to line And Dan [Operator the for first, going Kurnos,

Daniel Kurnos

no so for Great. all kudos Broadcaster accolades, you talked guys named you Year. but mean through own one talked up I being to brought -- the your of B+C accolades, you industry Adam, the

Just a couple.

I some I around Adam, strategy. and just appreciate to sports want really I think local really time, really incremental spend the the you've versus And us of dive maybe, into want the national data given to local. angle I parsing out kind the

-- February in just start specific on with just after it early, a on lot is dependent of happens the then the lot follow give next opportunity? the extensions out that we A you clearly seeing contracts. just local And some But sounds out Obviously, how maybe, what local of for Anything run of really let's about there, year, existing can the thinking pace. opportunity with might of markets, question you timeframe, Diamond. you're I'll like you sort side. have national us that. up general, kind you're target whether kind of a on And

Adam Symson

the I dedicated each And business. to partnership after for Dan, leagues to implosion especially brands that align local with for execute would should We're the we coming and feels you this for deals that assume our thanks good trauma strategy approaching shared opportunities really them, the Thanks, to where that the see words. they're I to say appreciated obviously we'll absolutely we've the discipline. and kind with off of reputation and sort shared continue developed risk of of RSN the and the Look, chaotic think of a frankly owners sports. with real local reward that's among

significantly see where In to local we a a And station of then different marketplace markets reach we do negatively that sports think independent take Las taking local our where done without what with anchor programming markets independent spectrum. local an we the really Vegas. advertising opportunity, in disrupting of share move that programming definitely as and flip because retrans we've market. station and that of the ION impacting tenant we ION can words, the the are local stream to in increasing There significant other

referenced the why a perspective earlier revenue for revenue even with new local for And for from core and opportunity so contracts. see that's expect sign, to would deal distribution, that rights I we growth continued between we expansion every

to I that's So an important think thing out. point

see expand have on retrans us new or the local would revenue to sign you we revenue we our this on step-ups contracts. every deal. situation, based new based a in And time only opportunity increase sports Typically, retrans

there so And core opportunity the sizable. growth impact, I is revenue dramatically think, to

from the But said, -- to to is seeing grow, XX% not the But we the leverage about came audience of in So rights. my really way growth ION's fact rights we're as the just X solidify growth national night national audience essentially Networks. important. level, prepared that remarks it's impactful ION, linear as the of up the opportunity broadly raise more the that over which viewing, WNBA On show the and is going given revenue to right? about Scripps as it's a diversify like the for the exposure single national a deal, weeks, growth growth to XX we obviously revenue talked overall think the rates of audio

For us, new the viewers of X the good audience. season diversification opportunity. expansion drew expansion in represented also season significant ION, a The to and million

said And of as from generated revenue new-to-Scripps that during the we advertisers. in I my XX% season was remarks,

in opportunities the national about as consistent additional building expect hope again for future. we're to and So with that with near the well, the brand side ION, rights for discipline say to would look to we we on have more

Daniel Kurnos

least, incremental granularity lineup of I that's sunsetting I just market XX% simply super at expanded go what you ex stuff. call that achieving the just of That's some just it. that's helpful. next or you way year figuring And there. better us mean, know let's color. expectations encompassing the give products out the just the, Got on if can are right the rights' just some on with appreciate Maybe it, if don't how then CTV sports you and on I have. drivers to plan the really growth and to guys some aforementioned more

Lisa Ann Knutson

All We're you it. in of both organic the just in CTV our revenue XXXX. above, Dan, growth seeing covered

see laid think an terms We mentioned year-over-year nice remarks, to laid with it. had prepared expect And foundation in upfront CTV, as in in we I of also, we what in of growth I XX% from a perspective in. my

also are continued channels. benefiting new launching We FAST of from

networks networks, we our think even on of FAST we the More, that now exception FAST. Defy, I with ability X completes Laff quarter maybe mentioned which launching to of were our each last new carried have

Laff is own And now called Core of that owned quite TV a we're took IP for related Court and and More So channel our there. IP Legendary that some FAST and value FAST. time creating on available we new TV asset that utilizing really we've whole created to we Trials,

in launches are those in we see of some some to X launched part we've So then here platforms over and this XXXX. continue last early guide also the And year. that includes quarter on -- the in into quarter. next We'll large launching

Daniel Kurnos

the spectrum synergy way just to size Got better it. there ION Jason, from And have housekeeping, appreciate I acquisition. of be Is you Really but side next line, that? off tranche X that. may year the another this think any

Jason Combs

up. talked about to We big we year we to initially was tied $XX -- acquisition, that's range million ION incrementally in next X the of that had it coming million cadence contract $XX Yes. really announced when the and sort

Operator

we Wells Steven line go to Cahall, the on next, Fargo. And for

Steven Cahall

QX networks. wondering more So a talk did the better QX Lisa, than you It's if than little little just a what a about had expected. you could bit worse was came what bit little in QX, you in guide for I

market had gotten understand if worse. trying So to the just

You're as bit conservative. you know CTV to about little bit a well. talked I trying be a

can broadly, So yourself little come delivery local there. And ION deleverage provide sales you both just the of direct color sales more the you're to for ad a to moving cross process the where together on how more like in from ION's local bit any see more sports over a you opportunity more and using maybe then to as platform do time? response side,

might into sending be seems about lot put misunderstood all excited or retail then space kind channels for are TV then, free looking sell-side also dollars wondering over by but is so Tablo. I of trial? that what analysts population. promoted you of you that marketing get some And And you Adam, more in be very to to seriously, Will key the unknown Because it it's time. or the a like shelf pretty of compelling, know

Lisa Ann Knutson

Yes, Adam. Steven, it to then and I'll start over turn

in know, think, you upfronts written the that fourth my And the as quarter season. start industry-wide, And I in the more, starting quarter least on of as us really about -- if -- in at dollars writing mentioned upfront spot remarks, new bright sort and the I mentioned down, depending not CTV across real were upfront I of the our year. And next networks. of some more board, fourth dollars was which for XX%, is the the a spot was bright for also the was next prepared So Bounce.

reset third volume in So quarter. we're of basically because with a the upfront starting lower

see, and to third own. really second scatter continuing quarter quarter, its we've and holding are seen it revenue However, we in

pricing remain We terms CPMs third what wrote of seeing pretty are upfront. and strong -- fourth scatter also the we for in compared to to -- quarter our in in the expecting

over were XX% saw of third we increase our in instance, that upfront For the in about scatter a marketplace. CPMs in terms dollars quarter,

fourth also which on advertising in fourth those bit The side high would part typically say, quarter. really see of sorts has -- softer and dollar little in the quarter, many in I the Medicare of you a ways, guide because DR of includes, things, is the

So that's as well. flowing through our guide

the continues spot think I CTV. be bright to

growth, not as this continue to ending that Dan year, to mentioned but in into QX my of I just XXXX. comments see We

put year local country, marketplace something only -- selling think, really did absolutely a ION the we a the unique that that's to is and that local, something off. working beyond we for working in across aren't us strategy for our we others think really that that local. new huge in XXXX because go-to-market see opportunity and have Chief a reach big XX% of of both, your not and with in the able of markets in as quite ION for that provides reaching our, question, we that's this -- Revenue of Officer, I next as I a And pull maybe wanting that the that place country, to with couple advertisers are As the the result depth

Adam Symson

of we're question thanks stations, to platforms of for influencers TV, leverage the of we'll The are through digital networks, and marketplace, our our ], speaking, we of segment connected we drive targeted the Steven the to local own in growth to work retail marketplace, sales quarter, the consistent the sales that Tablo. [ fourth sales Tablo. national (sic) on paid now in this with to, Yes, over-the-air except the essentially TV, from Tablo. across work. the transitioned continue doing over-the-air alongside spend growing and inventory spend dedicated the social had with Dan media, through loss digital and on some the other media linear We've is balance considering broadly

what with before. is about this we've So really consistent talked

or on expect costs average here tracking that adding share the that carefully We're we continue the the expect I sort of We And to to effectively want future calls. information the that to to it the customer CAC manage the ensuring value are activities some are that doing to track of to ARPU company. acquisition and we're so of Tablo. able of

tablotv.com package, the can't is we Look, definitely how of our full only Tablo consistent would growth not also who people that is you for over-the-air connected I and It on the growth And plus marketplace. provide don't Tablo, with TV happy in the the works, it with consistent with afford visit antenna focus sell-siders marketplace. if quite understand I'm expect to $XX. say

Operator

the Zangler Stephens. go line Nick And from next, we for into

Nicholas Zangler

I few got a here.

First, a one. just high-level

via to just it the touched accessibility regarding on could of kind service call, wanted You Disney+'s the expand the but your see you on on if subscription. streaming commentary thoughts in Charter

catalyst this guess, such Just specifically, a this the accessible I pivot MVPDs in stabilization going in services entering churn, do time and streaming where collectively face via think that MVPDs what you And do services quarter? it's is? across for streaming in their expect distributor, that would potential is the a you a across last are model distributors be to and of we're that what accelerating be seems to

Adam Symson

all, gone mean, essentially of that and first up Yes. Nick, all of new I we've alone bundle. a a the think expensive price services right. built of la so the Ultimately, has exactly I streaming carte more you're much

the the so with pay And SVOD bundling services subscription. TV ecosystem will TV pay from absolutely benefit in

the drop will redirected compelling better for rationalization Charter going successfully to the content in, the was first thing together to agreement ad calling cord case clearly for broadcast right? able which of nets believe consumer dollars cable think of ecosystem the dollars like still of came sorry, most we all, long most to So the we ecosystem, was valuable think in will together, referenced. One it up that retrans you that the clear broadcasters. And frees platform of out is benefiting obviously Charter-Disney for blackout TV cutting their power want and the lineup. linear more to a a content Disney's cable fact slow the station And a add for in showed future and we and So we've, watched was us, distributors. general provide that programming, lower I the the that resolution of validates Charter -- viewed for frees with Disney's make been pay stabilization in and up bundle also hold it value visible Disney+, be to time, cable the bundling willingness and the to valuable

given results think broadcasters the negotiation, of I So benefit. the

Nicholas Zangler

then question previous on And side, one. network on just helpful. a just the Very expanding the

more you that they're regard have to guide. hearing the less talked therefore, as is regard which flexibility years they commit in across reflection to effectively, advertisers past, board. I'm with that this Just of and unwilling to your upfront just to have a been and But leading upfront wondering -- visibility, definitely weakness about, the that if is looking you for

about would networks of And are demand catalyst thinking because guiding how you should generate to versus visibility XXXX thoughts materializes, what then that given have item. and Just modeling you're that, think you fourth this and you're about you're And it guiding about for quarter. XXXX right then potentially scatter think you what on out the the XXXX, so trend how there? think for we my potential we question fill that would then upside of how thinking be is, about if And that the line less market now? continuation guiding given should modeling on the just out that

Lisa Ann Knutson

bit for give for less in led probably been QX several issue absolutely last I later Yes, visibility industry-wide and scatter. QX. certainly, really, say an opportunity more would the dollars that and an upfront I think a the guide of you're their conservatism weaker you continues, weaker writing and certainly to right. and in certainly has to some upfront, The that our the phenomenon visibility lack -- does, quarters, probably upfront -- later in write ways, more

CPM big that in are committed. scatter our we from versus said, premiums upfront see I perspective pretty dollars a As

with flexibility And for we're higher advertisers pay flexibility, from want perspective, happy do. to that to they're so if which going that rates scatter a

the the X% about if talked CTV the So our sunsetting product, of our of in what range, back we've down would our to XX% being -- I terms closer you in be we with guide the think guide out lower-margin range. --

carefully. scatter being So watching the in that's I whether diligent certain or CPM if marketplace we think very DR the writing in We're categories hot. we're highest that can, get

Jason Combs

And regard it's question, Nick, think your in I XXXX to Jason.

out. see Lisa year of give get to in position I the that early think some referenced, much for you on shaping the insight because I uncertainty really to how call, Certainly, be it's better February too when to us we'll a comment into really XXXX. that we think we

Operator

line for next, And on NOBLE Kupinski, the go Capital Michael Markets. we to

Michael Kupinski

more your sports Adam, rights quarter. for thanks providing strategy. on Nice color

revenues. such I is meaningful impact already think it's question so company have few A that. a far having on amazing the that that the total on you

of you be arrangements. it as Are If enter are the many platforms? And And strategy helpful drive out kind in versus that because think sports your these that understand local broadcasters some from your into for a investors loss advertising be of would just would for and historically this I provide you rights. ratings. to what helpful rights your I rights, instances, can have to they think as leader getting lay different sports viewed to national assumptions kind margin strategy sports

Jason Combs

on. goes that the year X a individual value for we're Adam that margins. Jason. Mike, local and not top when out, specifics would giving them we're can is What these side, deal adding model be different and versus national we and opportunities, for the makes something and into when say on essentially the national look the calculation money I out deal add can on deal at is any positive tell we it's that I'll already local start on you over sports to starting model I deal, replacing rights good to on in a company. There a we incremental then scratch from this create because cash flow versus ION. we're

And the different. so works a little math

profit be thus You all you we've rate have the higher on national X. side, a out but far, need that year hurdle modeled to clear we've modeled out the deals to positive

Adam Symson

provide ours with fragmented We that at the clear. this this be the for for can platform be recognized leader. loss a in reach, of like owners time, such to me reason a the have marketplace. value think let that really reach. strategy, there's sports we We a not Mike, Yes. are especially With kind that is partners that our leagues just loss reach a and think think don't of significant sports the leader seeking

which would is us. a own. we over So do for stand in loss scenario contract, on a we in have to the deals of would sports, deal a no say that leader These their life

Michael Kupinski

Thanks for the color.

that that's important that. I there. all I have. That's it's think out I appreciate stressed

Operator

Partners. we'll last go for question, line And Craig Huber Research Huber, the our to

Craig Huber

that in to it just stations Great. about obviously TV want to talked your I fourth quarter. core advertising guys X% lift was the you sure. for a thought I make interesting

NHL costs those And incremental. all it's for here, X the pretty TV digits. have you up profitability deals get You're you you're the bringing mid-single happy because that with about in that I'm quarter talking up can fourth off

me TV Jason, to stations fourth in mid-single -- walk in why quarter maybe cost through maybe digits up is the year-over-year. be going just So

Jason Combs

Yes.

frontline going of things script, X are there a and some the of reporters year-over-year. year for X that adjustments and we and of there compensation handful some there, the seeing costs did in the So impact of in earlier being our some my reference

sports. where season say the also have roll the my the is to throughout is these for one, season, I would earlier year. do we We profit for some What comment costs in model there positive starting timing

a marketing product launching there's So is. lot where of when help new sports a audience the franchise, you're initially that find in to viewers

And so on. customer early acquisition

looking not are at So across it QX. We're sports we a in as what season X. looking is happening

these QX enterprises. through are QX profitable year, next of from So

X And also I deal Coyote that would announced we specifically, days in reference we the it. the before case launched of

And ahead is revenue more local sales perspective, in the sell really get the a that work to from Arizona one going franchise. so and in out marketplace that's loaded we go where to be back-end and as

some are other the I sports the So as in there item bit are QX mentioned X just just there. And quarter -- some of too or there in well. costs outside and the timing up is a that fourth

It's variety not things. So it's sports. not just one thing. a of It's just

a And wouldn't trend. take as wouldn't you're that what so -- I QX seeing in as take I

Craig Huber

X% extra $X core to another added as side the the lift obviously, call it advertising on mean you revenue. I of Okay. million million $X

Your sort up midpoint saying of of digits, that million X%, though $XX the costs take mid-single extra cost.

the up. that quarter year there, that's bumping just more costs saying lot that's sports in You're a it's right. than cost political-related Even ago assuming some have did though

Jason Combs

-- I There political margin, be mean is high really no cost. almost would Correct.

the costs And really fourth be have so any there political year. in last quarter material wouldn't

mentioned. other So I items those it's

Craig Huber

year, Okay. X.X percent of, where can on please? you ATSC us say, the maybe have at that just signal? your And side households Adam, update will markets of in the what things, that. it of end do think you on be Appreciate next the

Adam Symson

What percent of the markets?

Craig Huber

being broadcast Of your your the percentage markets, what sorry, think households, percent of them? will of And What's please? do year? signal you where be goal end that ATSC there, of to -- next your X.X

Adam Symson

the done the the get to can a I because Scripps of necessarily doesn't later up-to-date goal. looks about by market not transition It's we but afternoon. rest own, its on you by ultimately It's an far industry's industry we X.X of going flip that think thus the year. what version it's like to get Craig, and this market next where you station can with

Craig Huber

nitpick that the but said then in much a quarter auto here up, was finished? think, up the And we just that Okay. last similar question. October, XX% know in quarter? I you I How for is

Lisa Ann Knutson

we're really continued I said, was which auto was Actually, some QX, as in strong. October. up in XX% -- increases Yes. certainly seeing in And

in really upward it So we the territory. expect year end to

Jason Combs

is XX% of percent been in core probably time. was our the high in some quarter, it's quite which the It

Craig Huber

XQ? question quarter, I on I break in worse And trend last advertising stations core mean national, was third the national guess there the much TV local? just can versus how out my you

Jason Combs

national breakdown in say... -- I local The would

Craig Huber

the there. Yes, percentages

Jason Combs

in would say roughly But decline. in material I was line they in in and there national. Certainly, not in a local earlier Yes. change there of in been year-over-year with other each difference would the between XQ, year-over-year the year. terms say were I had the XQ,

Craig Huber

quarters, please. Retrans -- do What in down the I question, was quarter, subs, year-over-year. more. third in have Last recent Great. it Okay. Retrans saying mid-single been please? digits you've

Jason Combs

to that a XX-month It in mid-single-digit range basis. be continues down trailing on

Craig Huber

changing is it high end? That's mean the I of much it Is variability obviously there? the concern been investors.

Jason Combs

from a material this quarter last in we communicated we now. did quarter say what would see not change I it to

Operator

queue. in more questions Thank are you. there no And

may You continue.

Carolyn Micheli

us much, very you joining today. for Thank Don. everyone, Thanks,

Operator

the your conclude AT&T And Thank conference you for and does Conferencing service. our participation that for today. for using

disconnect. now may You

The E.W. Scripps Company (SSP) 3 Nov 232023 Q3 Earnings call transcript