Record political advertising revenues in 2006 meant $2 billion entered the marketplace, giving many stations groups booming financial periods. E.W. Scripps says the disappearance of that activity will have an effect on its 2007 financial results for its TV stations.
At the Credit Suisse Global Media and Telecom Conference and the UBS 34th Annual Global Media and Communications Conference in New York, company executives expect television station group revenue to drop 3% to 5%. In 2006, political advertising totaled about $45 million for the stations.
Conditions are far better at other parts of Scripps.
Its cable networks group, which includes HGTV and Food Network, forecasts a revenue surge of 10% to 13% for the year. Programming costs, the bulk of the division's expenses, is likely to be up 8% to 10%.
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For its digital businesses, Scripps is looking for profitability in the $80 million to $85 million range for the year from Scripps Interactive Media, which includes specialized search businesses Shopzilla and U.K.-based uSwitch.
For its older and struggling newspaper businesses, Scripps sees virtually all revenue growth coming from its newspaper Internet businesses. The company expects percentage increases in newspaper revenue be in the low single digits in 2007.