Can The E.W. Scripps Company's Local Media Rebound in 2025?

The E.W. Scripps Company’s SSP Local Media segment continues to be a foundational business for the company, driven by station-level strength. Even in a non-political year, the segment remained profitable in the first quarter of 2025. The company highlighted the continued relevance of its Local Media business and affirmed its confidence in the long-term value of its footprint.

However, for the second quarter of 2025, SSP expects Local Media revenues to decline in the high single digits due to ongoing tariff-related uncertainty, while expenses are projected to rise in the low single digits. On the bright side, the company anticipates improved year-over-year comparisons in the second half as certain expense items phase out. It also expects advertiser demand to strengthen later in the year, supported by premium inventory, such as women’s sports.

To support future growth, SSP announced a station swap with Gray Media, through which it will acquire Gray’s KKTV, which is affiliated with CBS in Colorado Springs, CO. This transaction will help SSP maintain a geographically diverse portfolio, strengthen its Western market presence and give it depth to strengthen financial durability. Additionally, SSP is leveraging centralized production and exploring the use of AI to support its local operations.

In the first quarter of 2025, the Local Media segment reported $325 million in revenues, down 7.8% year over year, and contributed roughly 62% of total company revenues. Segment profit was $34.9 million, down from $65.6 million in the prior-year quarter.

SSP Faces Stiff Rivalry in the Local Media Broadcast Space

The E.W. Scripps Company competes with top local broadcasters like Nexstar Media Group NXST and Sinclair SBGI in the U.S. local television market. 

Nexstar Media Group owns the United States’ largest local television broadcasting group, comprising top network affiliates, with more than 200 owned or partner stations in 116 U.S. markets. Sinclair owns 185 television stations in 85 markets affiliated with all major broadcast networks. It is investing in AI-driven news operations across its local stations, enhancing efficiency and local content delivery. 

Both Nexstar Media Group and Sinclair operate large portfolios of ABC, NBC, CBS and FOX affiliates, challenging SSP for audience share and local advertising across multiple regions.

SSP’s Share Price Performance, Valuation and Estimates

SSP shares have rallied 55.7% in the year-to-date (YTD) period, outperforming the Zacks Broadcast Radio and Television industry’s growth of 33.2% and the Zacks Consumer Discretionary sector’s return of 11.7%.

SSP’s YTD Price Performance

From a valuation standpoint, SSP stock is currently trading at a forward 12-month Price/Earnings ratio of 7.92X compared with the industry’s 31.86X. SSP has a Value Score of A.

SSP’s Valuation

The Zacks Consensus Estimate for second-quarter 2025 loss is pegged at 4 cents per share, which has remained steady over the past 30 days, indicating 73.33% year-over-year growth.

E.W. Scripps Company (The) Price and Consensus

E.W. Scripps Company (The) price-consensus-chart | E.W. Scripps Company (The) Quote

SSP currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

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This article originally published on Zacks Investment Research (zacks.com).

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