Scripps Networks' Margin Boost: Can SSP Stock Maintain Growth

The E.W. Scripps Company (SSP) is seeing margin improvement, largely powered by its Scripps Networks division. This growth comes as a result of disciplined cost control and a strategic focus on sports programming, especially in women's sports.

Key partnerships with the NWSL and WNBA are expected to boost revenue and profit margins in Q2 and Q3 of 2025. The company is doubling down on this strategy by securing distribution agreements for upcoming events like the SI Women’s Games and Fort Myers Tip-Off, scheduled for Q4.

For Q2, Scripps forecasts flat revenue but a low double-digit decline in expenses, continuing its path of efficiency. Notably, SSP has already surpassed its full-year margin expansion target of 400-600 basis points, thanks to aggressive cost-cutting measures rolled out in early 2025.

In Q1 2025, the Scripps Networks division brought in $198 million, a 5.4% year-over-year decline. However, profit increased from $49.7 million to $64.1 million, as expenses dropped by 16%. This lifted the segment margin to 32%, the highest since Q4 2022.

This performance was supported by strong ad sales and ongoing cost efficiency, helping the company post its best network margins in over two years.

Competitive Challenges

Despite these gains, SSP faces significant competition from national TV and CTV giants like Nexstar Media Group (NXST) and Sinclair Broadcast Group (SBGI). Nexstar is ramping up its sports coverage with initiatives like “Mobil 1 Victory Lane” on The CW’s NASCAR Xfinity Series, strengthening its hold on live sports audiences and advertisers.

To sustain momentum, Scripps must continue innovating in programming and advertising to stay competitive in a saturated and rapidly evolving media landscape.