E.W. Scripps Co. reported higher earnings and said that the reorganization announced in January will result in $40 million in annual savings. 

Net income was $73 million or 84 cents a share, up from $40.2 million or 43 cents a share a year ago. This year’s income includes a $5.5 million gain from redeeming senior notes.

Revenues were $681 million, up 9.4%.

The results were below Wall Street expectations, hurt by lower revenues and income at Scripps national networks unit.

“Since the beginning of this year, Scripps has been engaged in examining the best ways to structure our company so that we are well-positioned to capture the opportunities we see emerging in our industry,” Scripps CEO Adam Symson said. “We see those in three key growth areas: the content categories of news, sports and entertainment; TV distribution platforms; and the burgeoning marketplace enabled by ATSC 3.0.”

Also: Scripps Sees Opportunity in 'Broken' RSN Business

Symson said the reorganization will generate savings by centralizing some services and consolidating layers of management.

“We expect to realize savings of at least $40 million. Our end goal, however, is not just a more efficient structure but a smarter one, designed to use the breadth of our assets to accelerate the company’s growth,” he said.

Scripps’s local-media division had a segment profit of $152 million, up from $82.2 million a year ago. Revenue rose 24% to $433 million, with core advertising revenue down 11% to $164 million; $106 million in political advertising, up from $11 million a year ago, and distribution revenue up 5.4% to $160 million.

At Scripps Networks, segment profit fell to $80 million from $106 million a year ago. Revenue dropped 9.2% to $248 million as the national advertising marketplace softened, the company said. 

The head of Scripps Networks, Lisa Knutson, was promoted to chief operating officer. No successor has been named.

Looking ahead to the first quarter, Scripps said it expects local media revenue to be down by mid-single digits and Scripps Networks revenue to be down by high-single digits.

“The Q1 guide indicates national ads are still challenged at Networks, dragging EBITDA guidance to about $62 million vs our $84 million estimate,” Wells Fargo analyst Steven Cahall said. ■

Scripps Networks Interactive’s second-quarter earnings rose, driving by gains in advertising and affiliate revenue.

Net income rose 19% to $128 million, or 87 cents a share, from $108 million, or 72 cents a share. Last year’s earnings include a tax adjustment that reduced earnings by 5 cents a share.

Revenues rose 8% to $6.44 million. Advertising revenue was up 10% to $434 million and affiliate revenue rose 7% to $201 million.

“Scripps Networks Interactive once again delivered strong results demonstrating the strength of our lifestyle brands as valuable advertising platforms,” CEO Ken Lowe said in a statement. “We continue to balance investment in our brands by developing compelling content that engages millions of media consumers across a range of platforms and geographies. This has established Scripps Networks Interactive as the leader in influencing consumer purchasing decisions in the home, food and travel categories.”

Profits at the company’s lifestyle networks rose 10.8% to $311 million. Revenues increase 8% to $623 million. Advertising revenue rose 9 million to $426 million and affiliate fee revenue rose 6% to $190 million.

Operating revenues for Food Network were up 5.5% to $219 million; HGTV grew 10.6% to $227 million and Travel Channel rose 4% to $80 million.

Scripps Networks’ smaller channels also saw gains, with DIY up 10.6% to $35 million, Cooking Channel ahead 8.1% to $28 million, and Great American Country climbed 10.9% to $7 million.

The company’s digital businesses were up 5.9% to $24 million.