E. W. Scripps Co Class A (SSP)

E.W. Scripps Co Class A (SSP): A Comprehensive Overview

Company Profile

Detailed History and Background:

• Founded in 1878 by Edward Willis Scripps, the E.W. Scripps Company is a diversified media and broadcasting corporation with a long and rich history.
• The company started as a newspaper publisher and grew into a broadcasting giant, owning and operating television stations across the United States.
• In 2015, Scripps spun off its newspaper division, creating a separate publicly traded company called Journal Media Group.
• Scripps continued to focus on broadcasting and digital media, acquiring several digital media companies to expand its reach.

Core Business Areas:

• The E.W. Scripps Company operates in two primary segments:
  • Local Media: This segment includes Scripps' broadcast television stations, which reach approximately 20% of U.S. households. The stations provide news, entertainment, and sports programming.
  • National Media: This segment includes Scripps' national television networks, such as Court TV, ION Television, Grit, Laff, Bounce, and TrueReal. These networks offer a variety of programming, including news, entertainment, and sports.

Leadership Team and Corporate Structure:

• President & CEO: Adam Symson
• EVP & CFO: Lisa Knutson
• Executive Vice President & Chief Legal Officer: Joseph T. Neumaier
• Executive Vice President & Chief Human Resources Officer: Felicia L. Mebane
• President, Scripps Networks: Lisa Knutson
• Board of Directors: Adam Symson, Susan Boeschen, Michael J. Conaton, Lawrence A. Di Rita, Richard S. Emerson, Lisa Knutson, James A. Meyer, Richard Myers, and Elizabeth J. Sharkey.

Top Products and Market Share:

Top Products and Offerings:

• Local Television Stations: Scripps owns 61 local television stations in 41 markets across the United States. These stations are affiliated with major networks such as ABC, CBS, NBC, and Fox.
• National Television Networks: Scripps owns and operates eight national television networks: Court TV, ION Television, Grit, Laff, Bounce, TrueReal, Newsy, and Scripps News.
• Digital Media: Scripps owns and operates a portfolio of digital media brands, including Stitcher, Triton Digital, and Podtrac.

Global Market Share:

• Scripps is a major player in the U.S. broadcast television market, with its local stations reaching approximately 20% of U.S. households.
• The company's national television networks have a smaller market share, but they are growing in popularity.
• Scripps' digital media brands are also gaining traction, with Stitcher being one of the top podcast platforms in the United States.

Product Performance and Comparison:

• Scripps' local television stations continue to perform well, with strong viewership and revenue growth.
• The company's national television networks are also showing growth, with Court TV and ION Television attracting a growing audience.
• Scripps' digital media brands are experiencing strong growth, with Stitcher and Triton Digital expanding their reach and user base.

Total Addressable Market:

• The total addressable market for E.W. Scripps Co Class A is the U.S. media and entertainment industry. This industry is expected to grow at a compound annual growth rate (CAGR) of 4.5% from 2023 to 2028, reaching a market size of $1.3 trillion by 2028.

Financial Performance:

Revenue and Profitability:

• Scripps' revenue has grown steadily over the past five years, from $1.37 billion in 2018 to $1.81 billion in 2022.
• Net income has also grown over the same period, from $121 million in 2018 to $174 million in 2022.
• Profit margins have remained relatively stable, with operating margins around 15%.
• Earnings per share (EPS) have also grown, from $0.94 in 2018 to $1.35 in 2022.

Financial Health:

• Scripps has a strong financial position, with a Debt-to-Equity ratio of 0.59 and a Current Ratio of 1.64.
• The company has a healthy cash flow, with operating cash flow of $338 million in 2022.

Dividends and Shareholder Returns:

Dividend History:

• Scripps has a long history of paying dividends, with a current dividend yield of 2.2%.
• The company has a payout ratio of approximately 40%.

Shareholder Returns:

• Scripps has provided strong shareholder returns over the past five years, with a total return of 45%.
• This includes a stock price appreciation of 25% and a dividend yield of 20%.

Growth Trajectory:

Historical Growth:

• Scripps has a solid track record of growth, with revenue and earnings growing steadily over the past five years.
• The company has also made strategic acquisitions to expand its reach and diversify its business.

Future Growth Projections:

• Scripps is expected to continue growing in the coming years, driven by the growth of the media and entertainment industry and the company's strong financial position.
• The company is also focusing on expanding its digital media business and developing new revenue streams.

Recent Product Launches and Strategic Initiatives:

• Scripps has recently launched several new initiatives to drive growth, including:
  • The launch of Court TV, a new national cable network focused on true-crime programming.
  • The expansion of its digital media portfolio, including the acquisition of Stitcher and Triton Digital.
  • The development of new digital products and services, such as Scripps News, a streaming news platform.

Market Dynamics:

Industry Overview:

• The media and entertainment industry is a large and growing market, driven by the increasing demand for content and the proliferation of digital platforms.
• The industry is also facing challenges, such as cord-cutting and the rise of streaming services.

Market Positioning:

• Scripps is well-positioned in the media and entertainment industry, with a strong portfolio of local television stations, national television networks, and digital media brands.
• The company is also well-positioned to benefit from the growth of the streaming market, as it is developing its own streaming platform, Scripps News.

Competitors:

• Major media companies: ViacomCBS (VIAC), Disney (DIS), Comcast (CMCSA), Fox Corporation (FOX), Discovery Inc. (DISCA), AMC Networks (AMCX), Hearst Corporation, Gannett Co. (GCI).
• Local television station owners: Sinclair Broadcast Group (SBGI), Nexstar Media Group (NXST), Gray Television (GTN), Tegna Inc. (TGNA).
• Digital media companies: Spotify (SPOT), Pandora (P), TuneIn, iHeartMedia (IHRT), SiriusXM (SIRI).

Market Share Percentages:

• Major media companies: 60% of the U.S. media and entertainment market.
• Local television station owners: 30% of the U.S. media and entertainment market.
• Digital media companies: 10% of the U.S. media and entertainment market.

Competitive Advantages and Disadvantages:

Advantages:

• Strong portfolio of local television stations and national television networks.
• Growing digital media business.
• Strong financial position.
• Experienced management team.

Disadvantages:

• Exposure to the cyclical nature of the media and entertainment industry.
• Competition from larger media companies and digital platforms.

Potential Challenges and Opportunities:

Key Challenges:

• Cord-cutting and the rise of streaming services.
• Competition from larger media companies.
• The need to continuously invest in new content and technology.

Potential Opportunities:

• The growth of the streaming market.
• The expansion of the company's digital media business.
• The development of new revenue streams.

Recent Acquisitions (last 3 years):

• 2022:
  • Stitcher: Acquired from SiriusXM for $325 million. Stitcher is a leading podcast platform with over 2 million monthly active users.
  • Triton Digital: Acquired for $150 million. Triton Digital provides digital audio technology and services to radio broadcasters, podcasters, and music streaming services.
• 2021:
  • No recent acquisitions.
• 2020:
  • ION Media: Acquired from ION Media Networks for $2.65 billion. ION Media is a national television network with over 100 million viewers.