Alexa

E.W. Scripps posts 1Q loss

E.W. Scripps posts 1Q loss

Media company E.W. Scripps, which earlier this year shut down Denver's Rocky Mountain News, said Monday that weak advertising spending and a slew of charges led to a net loss in the first quarter.
Scripps, which owns newspapers and TV stations, posted a loss of $220.7 million, or $4.12 per share, compared with income from continuing operations totaling $84.1 million, or $1.55 per share, in the same quarter a year earlier.
Excluding items the latest quarter's loss attributable to Scripps shareholders would have been $13 million, or 24 cents per share. The items included a preliminary impairment charge of $192 million at the company's TV stations, and operating losses and wind-down costs of $13.3 million at its newspapers operated under joint operating agreements and newspaper partnerships.
Revenue fell 20 percent to $205.4 million from $255.7 million.
Analysts, on average, had expected a loss of 13 cents per share, excluding items, on sales of $202.3 million, according to a poll by Thomson Reuters.
The company said closing the Rocky Mountain News "eliminated significant financial risk."
"Operating losses and expenses related to the shutdown were confined to the first quarter, so now we move ahead sadly but in a much better position to weather the economic storm and focus on the television and newspapers markets where we have long-term opportunity," said Rich Boehne, president and chief executive, in a statement.
Boehne added, however, that the second quarter has not shown any signs of improvement over the first.
In addition to the Rocky's shutdown, Scripps also reduced salaries, eliminated bonuses and reduced or cut other expenses.
Revenue from newspapers managed solely by Scripps fell 22 percent to $122 million from the year-ago period. Print as well as online ad revenue declined. The company attributed the latter to the weakness in print classified advertising, to which more than half of the online advertising is tied.
Revenue from the company's TV stations declined 21 percent to $60.4 million, hurt by reduced spending by advertisers in the automotive, financial services and retail categories, Scripps said.


Updated : 2021-04-14 01:55 GMT+08:00