E.W. Scripps Q3 Profit Up, But Newspaper Revenue, Earnings Dip

By: E&P Staff Cincinnati-based E.W. Scripps Co. reported Thursday that its third-quarter profit from continuing operations was $87.9 million, or 54 cents per share, compared with $78.4 million, or 48 cents per share, in the year-ago period.

Total Q3 revenue was $596 million, up from $583 million a year ago.

At Scripps newspapers, total revenue fell during the third quarter to $158 million against $168 million in 2006. Newspaper online revenue increased 19% year-over-year to $10.4 million.

Newspaper profit for the period was $36.9 million against $39.7 million last year, Scripps said.

Newspaper expenses were down 3.7% in the quarter, partly due to the voluntary separation plan that was accepted by 137 newspaper employees earlier in the year.

"Lower local and classified advertising sales, including particularly weak real estate and employment advertising in the company's Florida and California markets, contributed to the decline in total newspaper revenue and segment profit," Scripps said in a statement.

Advertising revenue at newspapers managed solely by Scripps was $125 million, down 6.4% from the year-ago period.

Newspaper classified revenue plunged 14% to $46.6 million. Scripps said local ad revenue was down 9.7% to $32.3 million.

There were gains, however, in national, which was up 9% to $8.5 million, and preprints, which increased 4.9% to $37.9 million.

Online revenue, which Scripps includes in the "preprint and other" category, was up 19% from a year ago to $10.4 million.

Circulation revenue fell 5.8% to $28.8 million.

Scripps last week announced plans to split its newspapers, syndication businesses, and TV broadcast stations from its Scripps Networks and Scripps Interactive Media divisions, which include the higher performing businesses such as HGTV and the Food Network.

The E.W. Scripps Co. will include the newspapers, while Scripps Network Interactive would include the cable and Web operations. Both would be publicly traded. The split is expected to be final in the second quarter of next year.

CEO Kenneth W. Lowe noted in the Q3 report that "double-digit revenue and segment profit growth at Scripps Networks, led by HGTV and Food Network, helped the company overcome challenging market conditions that affected its local media and Internet search businesses during the period."

At Scripps Networks, third-quarter revenue jumped 16% from a year ago to $289 million. The division's profit was up 18% to $137 million.