E.W. Scripps Company ASSP

Morningstar Rating

Stock Research and Analysis

by Tom Corbett

Since it spun off its TV networks and interactive businesses in July 2008, E.W. Scripps has been operating as a more traditional local media pure-play, specifically newspaper publishing and broadcast television. We think the spin-off of its primary Read more

Bulls Say

The company's publications serve primarily midsize cities in the South and West, where populations are growing faster than the national average.

The company is taking steps to aggressively grow its online-only ad business, including revamping its sales commission structure, and targeting smaller local businesses.

Its broadcast operations offer a stabilizing component to the company's revenue stream, providing an offset to the sharp declines in print ad revenue at its newspaper operations. Read more

Bears Say

A number of Scripps' newspapers serve cities in Florida and California, two areas hit hardest by the downturn in the housing markets.

The company's interactive ad revenues at its newspaper business declined 26% during six months ended June 2009, faring no better than its local print ad business.

About two thirds of its online revenue is driven by sales of print ads. This leaves its online revenue stream exposed to the fortunes of its declining print ad sales.

The company's decision to suspend its $0.60 per share annualized dividend underscores the persistent lack of visibility for a recovery in its declining revenues and profitability. Read more

Strategy

E.W. Scripps seeks to build strong, local media franchises through its local newspaper and broadcast television properties. It also seeks to increase its online ad business by restructuring the commission Read more

Management

Richard Boehne rose from COO to CEO of E.W. Scripps following the spin-off of Scripps Networks Interactive SNI. He succeeded former E.W. Scripps CEO Kenneth W. Lowe, who moved on to serve as CEO of the newly spun-off company in July 2008. Prior to assuming Read more

Profile

E.W. Scripps owns and operates a collection of daily and community newspapers, primarily in medium-sized cities in the southern and western portions of the United States. Read more

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