Scripps sees ad revenues rising in 2003

NEW YORK, Dec 9, 2002; Reuters reported that media company E.W. Scripps Inc. on Monday said it expects newspaper advertising revenue to rise 3 percent to 5 percent in 2003, excluding its Rocky Mountain News paper in Denver.

Cincinnati-based Scripps said it was encouraged by improving ad sales in its mid-sized newspaper markets.

The company, speaking at a Credit Suisse First Boston media conference, also said it was evaluating a move into Spanish-language television for U.S. Hispanics, a project that could eventually become its fifth cable network.

"We have been working on the project for a couple of years," said Ken Lowe, Scripps president and chief executive. "It's a project that could take shape in the fourth quarter 2003."

Scripps has talked to "all the usual suspects," Lowe said.

Mexico-based Grupo Televisa and TV Azteca are currently the two main Spanish-language content producers in the world. Scripps also said it has had informal talks with Univision Communications Inc. and NBC's Telemundo Group Inc., the two leading U.S. Spanish-language broadcasters.

"This is a personality-driven audience," Lowe said referring to U.S. Hispanics. "We can't just translate our content, we have to have a specific approach."

More and more U.S. companies, tapping into the growing Hispanic population, have created advertising campaigns or products tailored exclusively for Spanish-speakers in the United States.

More than 35 million Hispanics now live in the country and are expected to become the largest U.S. minority in less than 3 years.

Scripps -- which operates the Home and Garden Television, Do It Yourself, Food Network and Fine Living networks - said it expects $90 million to $100 million in capital spending during 2003 and $22 million in pension expenses -- up from $13 million in 2002.

The company said it expects at least a $6 million improvement in 2003 operating cash flow from its newspaper in Denver, the Rocky Mountain News.

It expects 2002 operating cash flow in Denver to improve to $4 million from negative $16 million a year earlier. Scripps shares 50 percent of the profits generated by a joint operating agreement between the News and MediaNews Group's Denver Post.

The company expects ad and affiliate fee revenues at its network to be up about 15 percent and it sees anticipated continued revenue growth at its national programming services based on the strength of advanced advertising sales through the first three quarters of 2003.