E.W. Scripps: Planned Spinoff on Track

By: E.W. Scripps Co. said Wednesday its plan to separate into two publicly traded companies is on pace to close by the end of the 2008 second quarter.

The Cincinnati-based media company also maintained its fourth-quarter forecast and provided its 2008 outlook at the UBS 35th Annual Global Media and Communications Conference in New York.

Executive Vice President and Chief Financial Officer Joseph NeCastro said in a statement that Scripps is proceeding with all of the necessary filings related to the spinoff of its local television stations and syndication business from its newspapers. The company, which announced the planned separation in October, is making the move in an attempt to capitalize on its fast-growing cable and Internet-based businesses.

Scripps television properties include HGTV and the Food Network.

The company reaffirmed its forecast for fourth-quarter earnings from continuing operations between 68 cents and 72 cents a share.

Analysts polled by Thomson Financial predict profit of 71 cents per share.

President and Chief Executive Kenneth Lowe said in a statement that the company expects 2007 revenue of $2.5 billion, in line with Wall Street expectations.

For 2008, the company anticipates Scripps Networks revenue growth between 8 percent and 10 percent. Combined full-year earnings for its Shopzilla and uSwitch subsidiaries is anticipated in a range of $55 million to $65 million.

Scripps was less optimistic on its newspaper segment, cautioning that local and classified ad softness will weigh on results. The company expects total revenue for newspapers managed solely by Scripps to be down in the low-single digits.

The company predicts 2008 television station segment revenue will rise between 15 percent and 20 percent, on increased political advertising in the election year as well as NBC's coverage of the Summer Olympics.

Scripps said it plans to spend approximately $170 million to $180 million next year to expand Scripps Networks offices and production operations in Knoxville, Tenn. as well as for a new production plan for its Southwest Florida newspapers.