Executive Vice President & Chief Financial Officer, Ew Scripps -cl A
Search every verified Jason Combs interview, podcast appearance, and on-the-record quote — each transcript cross-checked by AI and human review to confirm speaker identity. Jason Combs, Executive Vice President and Chief Financial Officer of the E.W. Scripps Company, stated that the company’s primary capital allocation priority is debt reduction, noting that since the Ion acquisition in 2021, 99% of discretionary cash flow has been applied to debt paydown. He said the company recently refinanced and extended its 2026 and 2028 term loans and revolving credit facility, limiting the increase in its average cost of debt to less than one percentage point. Combs also said Scripps is supportive of changes to broadcast ownership regulations, particularly the national cap, and that the company is focused on swap opportunities and select asset sales rather than major acquisitions. He reported that the company sold $63 million in real estate, including broadcast towers and a TV station building, directing proceeds toward debt reduction. Combs discussed the company’s performance and outlook, stating that Scripps Networks segment margin expanded 870 basis points in the first quarter, exceeding full-year guidance, and that connected TV revenue increased 42% to over $100 million. He noted that political advertising spend in the 2024 election cycle rose 30% compared to the prior cycle. Regarding ATSC 3.0 and data casting, Combs expressed excitement about its potential as a complement to 5G, particularly in automotive and digital signage, but said significant revenue is expected later in the decade. He also said the company is not putting out specific numbers for the EdgeBeam team buildout but is more excited about data casting than at any point in his tenure.
“Our number one capital allocation priority is debt paydown and reducing leverage. Since the Ion acquisition in 2021, we have applied 99% of our discretionary cash flow towards debt paydown, which is an industry-leading number among local broadcast peers.”
“We recently completed the refinancing and extension of our 2026 and 2028 term loans as well as a revolving credit facility at good economics, limiting the increase in our average cost of debt to less than one percentage point despite the elevated rate environment.”
“We are very supportive of any opportunities to change the antiquated broadcast ownership regulations, especially the national cap, which was set when we competed only against a few local broadcasters, but now we compete against big tech for ad dollars.”
“Given our balance sheet, we don't see ourselves as a major buyer in the marketplace but are focused on swap opportunities and select asset sales to improve short-term operating performance.”
“If the rule changes to allow direct negotiations with virtual MVPDs, it could significantly improve both our top line and bottom line economics, as currently networks negotiate on our behalf but are not incentivized to allocate value in the best interest of affiliate partners.”
“We have sold $63 million in real estate including five broadcast towers and one TV station building, directing those funds towards debt paydown, and continue to evaluate non-core assets for potential monetization to accelerate financial flexibility.”
“We gave a margin expansion target of 400 to 600 basis points for our Scripps Networks segment this year, and in Q1 expenses were down 16% year-over-year with margin up 870 basis points, well above the top end of our full-year guidance.”
“Our connected TV revenue increased 42% and is now over $100 million, reflecting aggressive growth and monetization efforts despite competition from dominant players in the streaming industry.”
“We are excited about the potential of ATSC 3.0 and data casting, viewing it as a complement to 5G to meet growing data demand, with significant opportunities in automotive and digital signage industries, though significant revenue is expected more in the back half of the decade.”
“In the 2024 presidential election, we saw a 30% increase in political advertising spend compared to the last cycle, and expect to continue benefiting from political ad dollars due to our regional reach and engaged local news audiences.”
“Scripps had a really strong year in 2020 despite the challenges brought on by the COVID-19 pandemic; we plan to deliver well over 280 million dollars in free cash flow for the year versus our pre-pandemic range of 225 to 250 million.”
“In 2020, we renegotiated 42% of our subscriber base and benefited greatly from our new larger footprint, resulting in a significant growth in gross retransmission revenue of about 50% on an edge reported basis.”
“Scripps benefited from a strong presence in a number of expected presidential swing states in 2020, driving a record political year of 266 million dollars, significantly exceeding prior election cycles.”
“The Ion acquisition is a highly attractive brand with strong revenue growth, high margins, and significant cash flow; it repositions Scripps in the television landscape and enhances our enterprise durability and reach.”
“Ion reaches 96 percent of the U.S. through over-the-air distribution and carriage on cable and satellite, delivering well-known and beloved content with an extremely low cost structure, which drives industry-leading margins.”
Hanna Howard (Portfolio Manager) moderates a discussion with E.W. Scripps' CFO Jason Combs and Chief of Communications ...
E.W. Scripps VP, Planning, Budgeting & Forecasting Jason Combs' presentation from NobleCon17, January 2021. Following a ...
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