The E.W. Scripps Company Q1 2009 Earnings Call Transcript

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2009-05-04 12:30:39.0

Tags: J.P. Morgan Chase & Co., Call Transcript, Earnings, Florida, Seeking Alpha, E.W. Scripps Co.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Alexia Quadrani - J.P. Morgan.

Alexia Quadrani - J.P. Morgan

My first question is in the Newspaper business, if you look at the different regions you participate in, are you seeing signs of maybe stability or bottoming out in certain regions? Is Florida still the worst area?

And then on the Broadcast side of the business if you can maybe talk about forward pacings, what you're seeing there.

Rich Boehne

We'll let Mark talk about the Newspapers first and then Brian will talk about TV.

Mark Contreras

Alexia, Florida, as you know, kind of went into things first. I don't want to say or signal that they are out of the difficulties that they've been in, but I guess the best way to characterize them is that the entire group is performing similarly and so Florida doesn't stand out like a sore thumb like it had in quarters and years past. I hope that's helpful.

Brian Lawlor

And on the broadcast side I would tell you that Florida continues to struggle. The challenges that we've had in that market are probably slightly greater than the profile of the rest of our group.

Alexia Quadrani - J.P. Morgan

And general pacings just across Broadcast - are things looking just as bad, I guess, in April/May?

Brian Lawlor

Yes, to be honest with you, they're pacing kind of in line with the way they paced in first quarter. And, you know, with the business breaking differently we're seeing much different habits. Business is coming in much later than it has in the past, but I would say that the second quarter pacing reflects a similar trend to how we saw things going in the first quarter.

Alexia Quadrani - J.P. Morgan

And then just a quick question on your online business in general. You mentioned in the prepared remarks or in the release that online advertising was down, but if you exclude the advertising associated with the print product you are seeing some pickup there. Is there certain verticals - I assume it's in the retail sector that you're seeing pickup in the online business, is that correct?

Mark Contreras

Probably the biggest place where we're seeing growth and the biggest contributor to that 30% growth in pure play is behavioral targeting with our Yahoo! partnership. All of the verticals - auto, real estate, help wanted even - are down, but our ability to sell behavioral targeting has really caught on with our advertisers and particularly with our sales forces. We compete in the consortium with other companies - we're members with other companies, I should say - and we're very proud of the results that we've driven so far. We're kind of at the top of the consortium in terms of gross dollars sold in that. So that's really what's driving the pure play number the most.

 

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