FINANCIAL PERFORMANCE
Scripps Networks Interactive has seen decent stock market success over the past ten years. Currently the company is trading with a market capitalization of $11.4 billion and is growing by 2.79 percent on a quarterly basis.
Scripps earnings was expected to grow over the next few quarters, $1.18 per share; however, it has not been predicted how the recent acquisition will affect this.
The company’s shares are thinly traded, making it hard for the company to build momentum. This is due to the company not being as recognizable as many of the assets it holds, such as HGTV or the Food Network.
The company steadily increased from $3.0 to $3.6 billion over that time period, stated in its financial records from 2014 to 2017. In 2017, the company held record consolidated operating revenues of $3.6 billion, an increase of 4.7 percent.
HGTV has consistently been their most lucrative channel over the past three years, according to the annual reports from the company’s archives, which can be seen below.
Despite concerns over the acquisition, Discovery stated that it would honor the $90 per share, breaking down into $63 in cash and $27 in Discovery. Ultimately, Scripps shareholders will own 20 percent and Discovery shareholders will own 80 percent, according to a press release by the company.
There was a major dip in Scripps stock in 2016, but after it has steadily increased every year, shown below in a graph from Yahoo! Finance.
The company has proven to be very profitable over the years, especially with the expansion of their international audience. With the completed acquisition by Discovery, the company should continue to see an increase in its financial and stock market performance due to the increased viewer base and combined assets.