E.W. Scripps’ plan to strengthen its interactive division by splitting it off from the company’s slow-growing businesses is sensible, but if the Interactive trends don’t change, there isn’t going to be much demand for the stock. Right now, the Interactive division has the dubious distinction of being one of Scripps’s fastest-shrinking divisions.
In a red-hot online advertising market, Scripps’ Interactive revenue declined more than 10% year-over-year in Q3, from $60.9 to $54.6 million. Profit dropped, too–from $9 million to $8.2 million. The Shopzilla acquisition has been a disaster.
Scripps’ boring others businesses, meanwhile, are also tanking:
- Newspaper revenue dropped 6%
- TV revenue dropped about 10% (OK, maybe this is the worst-performing division), with profit down from $22 million to $13 million
- Licensing dropped more than 10% (nope–this was the worst). Profit fell more than 50%, to $1.7 million.
Somehow, Scripps is still clinging to a $6 billion market cap. Current trends suggest that the stock has not yet begun to fall. Release
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.